Neoliberalism and altered state developmentalism in the twenty-first century extractive regime of Indonesia

This article examines neoliberal leverage, states and ‘deep marketization’ in relation to resource extraction in Indonesia. The concept of ‘altered’ state developmentalism within a world-historical analysis of the semi-peripheral zone of the world-economy is introduced to address how much and in what ways resource extraction persists and even continues to expands. While most theories of development assume either that natural resource extraction will gradually fade or that the ‘curse’ of natural resources requires institutional reform, Indonesia’s ‘extractive regime’ persistently and under different political systems relies on extraction of land, forest, and mineral resources. Altered state developmentalism occurs, from this perspective, within a world-historical cycle of resource nationalism (CRN) as US hegemony declines. In contrast to the A first CRN’s put more emphasis on nationalizing ownership, e for progressive redistribution aims and industrial transformation. In contrast to the first CRN's emphasis on nationalizing ownership, empirical evidence from the oil, mining, and oil palm sectors illustrate how the advance of neoliberalism is tempered in the second CRN by altered developmentalism that aspires for growth and poverty reduction in a more market-oriented direction pushed by neoliberal leverage. While accommodating some pressures for land rights against the expansion of extractive frontiers, the overall thrust expands the conditions for yet more deep marketization.