Water Privatization in the Capital City of Indonesia and Struggles over Policy:

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Other Title
  • インドネシアの首都ジャカルタ水道事業と民営化政策をめぐる攻防
  • インドネシアの首都ジャカルタ水道事業と民営化政策をめぐる攻防 : ポスト・スハルト期の政治経済構造の継続と変容
  • インドネシア ノ シュト ジャカルタ スイドウ ジギョウ ト ミンエイカ セイサク オ メグル コウボウ : ポスト ・ スハルトキ ノ セイジ ケイザイ コウゾウ ノ ケイゾク ト ヘンヨウ
  • ――ポスト・スハルト期の政治経済構造の継続と変容――
  • Changes and Continuities in Post-Suharto Indonesia

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This paper analyzes the water privatization process in Jakarta, Indonesia, focusing on the changes in policy after the fall of Suharto in 1998, to show the strategic adaptation of domestic business elites to survive after the drastic transition period. During the Suharto era, business elites were able to accumulate capital by drawing patronage from former President Suharto. However, the democratization of the country led to Suharto's ouster and disordered the former interest structure, which was deeply entrenched in the Indonesian political economy. Today concessions in water privatization are no longer sustained by merely relying on the political authority.<br>  In Jakarta, the center of Indonesia's politics and economy, agreements with Suharto guaranteed private corporate interests with lucrative business relating to city development. Recently, however, private businesses, especially those managing public infrastructure, have become increasingly vulnerable to aggressive public backlash and supervision by the regulatory bodies of the provincial government. Despite this increasing vulnerability, domestic business elites have succeeded in regaining their lucrative concessions by seizing opportunities and cooperating with the capitals of foreign countries. These business elites have successfully adapted to the changing democratic environment with sophisticated strategies and shrewd risk management.

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