Indonesia's political economy is characterized by a shift from a patrimonial administrative state to a patrimonial oligarchic state. In two urban contexts—one in Sulawesi with a dominant bureaucracy and weak business sector, and another in Java ruled by a business dynasty—patronage politics and clientelism shape government-business relations. Infrastructure projects are key sources of political financing and influence.
Despite different power dynamics, both towns exhibit entrenched patronage systems, highlighting challenges to governance reform and economic development in Indonesia’s urban political landscape.