Suharto Capitalism

In the violence that preceded Indonesia's recent election, one day in May stands out. Rampaging election mobs tore through streets in towns throughout the archipelago, setting fire to a department store and burning alive 123 rioters trapped inside. Anticipating violence, thousands of Indonesians had stocked up on goods and locked themselves up in the safety of their homes. Some had even ordered cable television to watch the news. Thus, Indovision, News Corp.'s pay-TV network in the country, scored a record number of sales as hundreds of new subscribers paid about $1,000 each for their first monthly subscriptions, digital decoders, dish antennas, and installation fees.

Strife, tension, corruption, anger, violence. These are becoming standard terms to describe life in the world's fourth-most-populous country. As an aging President Suharto solidifies his political hold over 200 million people in yet another lopsided election, the capitalist underpinnings of his Indonesia are shaking. In his waning years, Suharto's increasingly autocratic rule is cancelling out some of his most important economic achievements. Ostentatious displays of greed by the President's family and friends are fueling mass resentment. The tiny middle class is feeling just enough trickle-down to make them envious of the rich but not enough to feel satisfied. And small businesspeople cut out of the economic boom are angry too.