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In Resource Nationalism in Indonesia, Eve Warburton traces nationalist policy trajectories in Indonesia back to the preferences of big local business interests. Commodity booms often prompt more nationalist policy styles in resource-rich countries. Usually, this nationalist push weakens once a boom is over. But in Indonesia, a major global exporter of coal, palm oil, nickel, and other minerals, the intensity of nationalist policy interventions increased after the early twenty-first-century commodity boom came to an end. Equally puzzling, the state applied nationalist policies unevenly across the land and resource sectors. Resource Nationalism in Indonesia explains these trends by examining the economic and political benefits that accrue to domestic business actors when commodity prices soar. Warburton shows how the centrality of patronage to Indonesia's democratic political economy, and the growing importance of mining and palm oil as drivers of export earnings, enhanced both the instrumental and structural power of major domestic companies, giving them new influence over the direction of nationalist change.
During the global commodity boom, Indonesia emerged as an exemplar of resource nationalism. The government introduced a range of nationalist policies in the mining sector, ranging from export bans to forced foreign divestment. Once commodity booms end, however, analysts generally predict that resource-rich states such as Indonesia will abandon the nationalist position with a view to attracting foreign investment. Indeed, historically, economic nationalism in Indonesia has peaked during the good times of a resources boom, and faded during an economic downturn. But the situation in Indonesia today seems to challenge these market-cycle theories. This Analysis examines the durability of contemporary resource nationalism in Indonesia. It argues that structural features of the post-Suharto political economy have sustained the nationalist policy trajectory that emerged during the boom. First, Indonesia's business class is more liquid and more engaged in the resource industries than at any previous time in Indonesia's history. The notion that Indonesians should both own and run their own extractive sector is, therefore, no longer merely aspirational. The mood of contemporary Indonesian politics has also boosted resource nationalism's appeal. This points to a second factor sustaining resource nationalism: popular mobilisation and electoral politics in post-authoritarian Indonesia.
Indonesia is a major exporter of the world's mineral and agro-commodities. During the global commodity boom, which took place roughly from 2003 to 2013, Indonesia's resource sectors were subject to new nationalist agitation and intervention. The government placed limits on foreign investment, and restricted raw commodity exports. These policies, therefore, disrupted global markets and angered foreign companies and trading partners. Nationalist intervention was remarkably aggressive in some sectors, such as mineral mining; in others, however, like the booming palm oil sector, nationalist policy proposals failed. What explains this nationalist variation? Conventional market-cycle theories suggest resource nationalism rises and falls in tandem with commodity prices. However, external shocks cannot explain the varied policy responses we find throughout resource-rich countries, and across their resource sectors. Nor can market-centred theories explain why nationalist interventions sometimes persist long after a boom has ended. Variation tells us that nationalism is contingent - but contingent upon what exactly? What are the mechanisms that lead from a price boom to very different nationalist outcomes? What makes some resources more vulnerable to nationalist mobilisation than others? Why do states behave differently in different sectors? To answer these questions, this thesis brings recent comparative work on resource nationalism into conversation with classic political economy scholarship on business, politics and economic policymaking. It refocuses the analytical lens upon sector-level variation, holding state-level conditions constant, and offering a structured comparison of varied nationalist outcomes in Indonesia's mining, commercial plantations, and oil and gas sectors. The principal contention of this thesis is that nationalist variation was a function of the preferences and capabilities of prevailing domestic business interests. While nationalist policy networks in each sector included a range of actors from the bureaucracy, private sector and civil society, those networks prevailed when they enjoyed support from an expanded and materially-powerful class of domestic resource companies. The subsidiary contention is that business's policy preferences and capabilities were conditioned by each sector's unique structural conditions - such as dependence upon and integration with foreign capital, levels of business internationalisation, contribution to state revenue and developmental goals, and each commodity's centrality to broader nationalist narratives. In other words, variation was contingent on structural conditions in each sector that gave rise to, and enabled, effective nationalist policy networks. This study is motivated by an empirical puzzle about nationalist outcomes in Indonesia, and aims first for internal validity over generalisability. However, it also explores the portability of these claims beyond the Indonesian case. Specifically, this thesis proposes a new model for explaining cross-sector variation which foregrounds a causal role for the preferences of lead firms and their levels of internationalisation. It offers a preliminary test of the model's explanatory power by introducing Brazil as a second country case study.
In Resource Nationalism in Indonesia, Eve Warburton traces nationalist policy trajectories in Indonesia back to the preferences of big local business interests. Commodity booms often prompt more nationalist policy styles in resource-rich countries. Usually, this nationalist push weakens once a boom is over. But in Indonesia, a major global exporter of coal, palm oil, nickel, and other minerals, the intensity of nationalist policy interventions increased after the early twenty-first-century commodity boom came to an end. Equally puzzling, the state applied nationalist policies unevenly across the land and resource sectors. Resource Nationalism in Indonesia explains these trends by examining the economic and political benefits that accrue to domestic business actors when commodity prices soar. Warburton shows how the centrality of patronage to Indonesia's democratic political economy, and the growing importance of mining and palm oil as drivers of export earnings, enhanced both the instrumental and structural power of major domestic companies, giving them new influence over the direction of nationalist change.
Globalisation is more complex than ever. The effects of the global financial crisis and increased inequality have spurred anti-globalisation sentiment in many countries and encouraged the adoption of populist and inward-looking policies. This has led to some surprising results: Duterte, Brexit and Trump, to name a few. In Indonesia, the disappointment with globalisation has led to rising protectionism, a rejection of foreign interference in the name of nationalism, and economic policies dominated by calls for self-sufficiency. Meanwhile, human trafficking and the abuse of migrant workers show the dark side of globalisation. In this volume, leading experts explore key issues around globalisation, nationalism and sovereignty in Indonesia. Topics include the history of Indonesia’s engagement with the world, Indonesia’s stance on the South China Sea and the re-emergence of nationalism. The book also examines the impact of globalisation on poverty and inequality, labour markets and people, especially women.
A revealing reassessment of the American government's position towards Indonesia's struggle for independence.
As the largest Muslim country in the world, Indonesia is marked by an extraordinary diversity in language, ancestry, culture, religion and ways of life. Christianity, Islam and Nationalism in Indonesia focuses on the Christian Dani of West Papua, providing a social and ethnographic history of the most important indigenous population in the troubled province. It presents a fascinating overview of the Dani's conversion to Christianity, examining the social, religious and political uses to which they have put their new religion. While its indigenous population is Papuan and its dominant religions are Christianity and animism, West Papua contains a growing number of Papuan Muslims. Farhadian provides the first study of this highland Papuan group in an urban context which helps distinguish it from the typical highland Papuan ethnography. Incorporating cultural and structural approaches, the book affords a fascinating insight into the complex relationship between Christianity, Islam, and nationalism.
It has always been a matter of national pride that independence came to Indonesia not as the result of a negotiated transfer of sovereignty, though the process was completed in that way, but through a struggle of heroic proportions in whose fires the nation itself was forged. The revolution, indeed, is central to the Republic's perception of itself. To call it a revolution is, of course, to beg a number of important questions. What is a revolution? Is the concept, developed in modern thought on the models of the French and Russian revolutions, applicable to a nationalist struggle for independence? Or must a revolution involve also a transfer of power from one social class to another and a subsequent social transformation? For Indonesians looking back to the birth of the nation, however, such questions do not arise. For them there is no question but that the events of 1945-49 constituted a revolution, a revolution that is seen as the supreme act of national will, the symbol of national self-reliance and, for those caught up in it, as a vast emotional experience in which the people -- the people as a whole -- participated directly. The exploration of Sjahrir's recruitment of a group of followers during the Japanese Occupation and of the character and attitudes of the group is based, in large measure, on interviews with its surviving members. A highly articulate body of people, they clearly enjoyed recalling their youth, remembering particular experiences, and thinking back on the issues that had preoccupied them and the ideas that had excited them as students. For many of them it had obviously been a golden age, perceived all the more vividly now because the world they had hoped for had never come into being. There is, perhaps, a good deal of nostalgia in their memories of what it was like to be a part of a crucial period in their country's history and no doubt some misjudgment about the parts they played. Oral history is a risky business, given the fallibility of human memory and the tendency for interviewer and subject alike to collaborate in re-shaping the past in the light of their later perspectives. The dangers of such a method are discussed below. Nevertheless, provided it is kept in mind that memories are documents of the present and not of the period with which they deal, it is important to gather these recollections while members of the generation in question are still alive.
Professor Kahin's classic 1952 study, reprinted for a contemporary audience. An immediate, vibrant portrait of a nation in the age of revolution, featuring interviews with many of the chief players. With new illustrations and a new introduction by Benedict R. O'G. Anderson.