The Changing Nature of Oligarchy in Indonesia
Indonesia’s political economy has shifted from the promises of neoliberal globalisation toward a deeply entrenched oligarchic order, where dynastic politics and elite networks dominate governance and resource allocation. Political families increasingly monopolise electoral competition, particularly in resource-rich regions like Southeast Sulawesi and North Maluku, ensuring access to lucrative sectors such as nickel, coal, and palm oil. At the national level, nepotism extends into cabinet appointments and party leadership, creating cartel-like coalitions that distribute state spoils among elites. Meanwhile, neoliberal labour reforms, including the Omnibus Law, have exacerbated precarious employment through outsourcing, short-term contracts, and gig work, deepening inequality and weakening collective worker power. Although the Constitutional Court has curbed some excesses, reforms remain constrained by elite interests, and civil society movements lack the strength to challenge the oligarchic structure. In practice, electoral democracy masks a system where money and dynastic power, rather than popular votes, are the true determinants of authority, consolidating Indonesia’s status as a formally democratic but substantively oligarchic state.