Resource Nationalism in Indonesia: Booms, Big Business, and the State

Eve Warburton's Resource Nationalism in Indonesia explores how commodity booms lead to nationalist policy interventions in resource-rich countries, but in Indonesia, the intensity of these interventions increased after the commodity boom ended. This is due to the economic and political benefits that accrue to domestic business actors, as well as the centrality of patronage and the growing importance of mining and palm oil as drivers of export earnings.

Format: Unspecified
Length: 252 pages
Publication date: 15 November 2023
Publisher: Cornell University Press

Resource nationalism in Indonesia has its roots in the preferences of powerful local business interests, as traced by Eve Warburton in her book. Commodity booms, which are common in resource-rich countries, often lead to more nationalist policy styles. However, 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. This is particularly puzzling as the state applied nationalist policies unevenly across the land and resource sectors.

Resource Nationalism in Indonesia delves into these trends by examining the economic and political benefits that accrue to domestic business actors when commodity prices soar. Warburton demonstrates how the centrality of patronage in Indonesia's democratic political economy, coupled with the growing importance of mining and palm oil as drivers of export earnings, enhanced the instrumental and structural power of major domestic companies. This newfound influence gave them a significant role in shaping nationalist change.

The book also explores how the state's engagement with domestic business interests influenced the development of nationalist policies. It highlights the ways in which the government used subsidies, tax breaks, and other incentives to promote the growth of specific industries, such as mining and palm oil. These policies, while intended to benefit domestic businesses, often had unintended consequences, such as environmental degradation and social unrest.

Furthermore, Resource Nationalism in Indonesia examines the impact of these policies on Indonesia's international relations. The country's resource-richness has made it a target for foreign investment and exploitation, leading to tensions with neighboring countries and international organizations. The book argues that the state's nationalist policies have contributed to these tensions by creating a sense of national pride and protecting domestic industries from foreign competition.

In conclusion, Resource Nationalism in Indonesia provides a comprehensive analysis of the factors that have shaped nationalist policy trajectories in the country. By examining the economic and political benefits that accrue to domestic business actors, the book sheds light on the complex dynamics between the state, local business interests, and nationalist change. It is a valuable contribution to the study of resource nationalism and its implications for developing countries.

Dimension: 229 x 152 x 21 (mm)
ISBN-13: 9781501771965