Historical and Structural Analysis of Modern Indonesia Capitalism -- A Case Study of Kalimantan Forest Industry

Examines the historical development of capitalism in modern Indonesia from the perspective of the relation between the state & the capitalist class. The development of forest industries in Kalimantan is used as a case study to analyze the formation of the bureaucratic capitalist class. In Western Europe, the early stages of capitalism were marked by an uneasy & antagonistic relationship between the capitalist class & the state apparatuses. The latter were to provide a liberal & legitimate environment for the development of the former. In contrast, Indonesia lacked a native capitalist class; consequently, the developing capitalist class lacked the ability to counteract the state apparatus & relied on it to provide a stable political order, suppress union's activities, & enhance capital accumulation. In addition, the military bureaucratic group neither maintained administrative neutrality nor upheld the principle of administrative professionalism. Rather, they utilized the state apparatus as a tool for personal capital accumulation. The military bureaucratic group allied themselves with the capitalists to form a new bureaucratic capitalist class. Adapted from the source document.