ABSTRACT

INTRODUCTION We have seen that in the first half of the 1970s important sections of the political public adopted a more critical attitude to the government’s development strategy generally, and to its emphasis on foreign investment in particular. This populist antagonism towards foreign capital fed back into government policy, and the Malari protests gave impetus to the momentum that had been building. A report for American firms seeking to invest in Indonesia noted that the riots provided the catalyst for subsequent policy changes, marking the end of a ‘pragmatic “let’s work it out” philosophy... and the emergence of economic nationalism as perhaps the dominant force shaping government investment policies’ (US Embassy 1975: 3).