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Indonesia's Changing Political Economy

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  • Davidson,Jamie S.

Abstract

Indonesia is Southeast Asia's largest economy and freest democracy yet vested interests and local politics serve as formidable obstacles to infrastructure reform. In this critical analysis of the politics inhibiting infrastructure investment, Jamie S. Davidson utilizes evidence from his research, press reports and rarely used consultancy studies to challenge mainstream explanations for low investment rates and the sluggish adoption of liberalizing reforms. He argues that obstacles have less to do with weak formal institutions and low fiscal capacities of the state than with entrenched, rent-seeking interests, misaligned central-local government relations, and state-society struggles over land. Using a political-sociological approach, Davidson demonstrates that 'getting the politics right' matters as much as getting the prices right or putting the proper institutional safeguards in place for infrastructure development. This innovative account and its conclusions will be of interest to students and scholars of Southeast Asia and policymakers of infrastructure investment and economic growth.

Suggested Citation

  • Davidson,Jamie S., 2015. "Indonesia's Changing Political Economy," Cambridge Books, Cambridge University Press, number 9781107086883.
    • Handle: RePEc:cup:cbooks:9781107086883
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    Cited by:

    1. Kim, Kyunghoon & Sumner, Andy, 2021. "Bringing state-owned entities back into the industrial policy debate: The case of Indonesia," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 496-509.
    2. Shatkin, Gavin, 2022. "Financial sector actors, the state, and the rescaling of Jakarta’s extended urban region," Land Use Policy, Elsevier, vol. 112(C).
    3. Gavin Shatkin, 2022. "Mega-urban politics: Analyzing the infrastructure turn through the national state lens," Environment and Planning A, , vol. 54(5), pages 845-866, August.
    4. Frank Siedlok & Natasha Hamilton‐Hart & Hsiao‐Chen Shen, 2022. "Taiwan's COVID‐19 Response: The Interdependence of State and Private Sector Institutions," Development and Change, International Institute of Social Studies, vol. 53(1), pages 190-216, January.
    5. Robbie Peters, 2023. "THE LIMITS OF INFRASTRUCTURE: Public Transport in a Post‐colonial City," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 47(2), pages 167-181, March.

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