The political economy of the marginalization process in Indonesia's 'New Order'

Abstract

This thesis is aimed at examining the marginalization process which has been undergone by various groups in Indonesian society since the nation's political edifice abruptly changed in 1966 resulting in the economy being integrated into the international capitalist system. Given that the political system is based on an authoritarian rule, the establishment of political poor structures unquestionably entails marginalization of large parts of the ruled masses who are considered detrimental to the development of a strong state. As society becomes apolitical, the people are unable to pressure the government to promote their interests, such as giving them a better price for their labor and increasing their standards of living. The weakening of the bargaining position of society vis-a-vis the state is exacerbated as incorporation of the national economy into the world economy requires domination and management of the domestic polity which are congruent with capitalist development of the state.

In this analysis, the nature of the New Order state is considered the main causal factor of the marginalization process. The thesis also identifies two other contributing factors, external--world politics and the world economy--and historical--the legacy of pre-colonial Indonesian state's political culture, that of Dutch colonialism's socioeconomic stratification, and that of national crises of two political systems preceding the New Order. In addition, the discussion also illuminates the nature of Indonesian society in order to fully comprehend the phenomenon of marginalization in Indonesia.

This study discusses how those marginalized fare after economic liberalization implemented in the mid-1980s encouraged calls for the same process in the political field.