Abstract
ABSTRACT This study explores the role of patronage in Indonesian State-Owned Enterprises (SOEs) by analyzing board appointments between 2004 and 2019 under two different presidential administrations—those of Susilo Bambang Yudhoyono and Joko Widodo. The study is based on a content analysis of board members and their political affiliations in fifteen of the largest Indonesian SOEs and in-depth, semi-structured interviews with a former minister, high-ranking officials in the government, political party members, CEOs, and SOE board members. The study identifies how key patrons influence board appointments and how the sitting president, a pivotal patron in the post-authoritarian context, strategically uses patronage for power consolidation and political stability. Given the financial significance and power of SOEs, placing loyalists on boards serves the interests of ruling political parties and elites. This also enables elites to produce even more patronage, which is beneficial for their personal political machinery. This intricate interplay sustains the presence of patronage in Indonesia’s democratic landscape.
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