ABSTRACT
Plutocracy, literally, means the rule of wealth. This study analyses the
transformations in Indonesia from a bureaucratic regime to one which is
plutocratic. It will demonstrate how the hierarchy inside the state-business
oligarchy shifted in favour of capital. One may argue that all societies are ruled by the wealthy (e.g. Miliband
1969: 23). However, this assertion is too general, as state power may also be
held by groups that establish their power and authority on sources other
than capital. Indonesia during the rule of the so-called New Order (1966-
98) was one such case. This regime was by and large dominated by
bureaucrats, while the predominantly Chinese capitalists were politically
restricted. The more distinct characteristics of plutocracy in post-author-
itarian Indonesia thus need to be defined in contrast to the previous regime that was in power until the financial crisis in 1997/1998, in which politico-
bureaucrats were a dominant part of the ruling alliance that prevailed.
