Relasi bisnis dan kekuasaan dalam industri tepung terigu Indonesia: Studi atas Liem Sioe Liong dan rezim Soeharto (1966–1998)

Abstract

The New Order regime under President Soeharto (1966–1998) established not only political stability but also a patronage-based economic system linking state power with selected business elites. This article examines the political–economic relationship between Soeharto and Liem Sioe Liong through the development of Indonesia’s flour industry, particularly the monopoly held by PT Bogasari Flour Mills. Drawing on historical methods—heuristics, source verification, interpretation, and historiography—within a political economy framework, this study analyzes state policies and business practices that facilitated industrial concentration. Since 1972, the designation of the National Logistics Agency (Bulog) as the sole wheat importer and the granting of exclusive milling and distribution rights to PT Bogasari enabled the consolidation of market control. The findings demonstrate that the relationship between Soeharto and Liem constituted a mutually reinforcing patron– client network, allowing the Salim Group to expand from flour production into processed food industries, including instant noodles and snack foods. By the early 1980s, PT Bogasari controlled approximately 80% of Indonesia’s flour market, while the acquisition of PT Prima in 1982 further entrenched ties between business networks and state power. The Asian financial crisis of 1997–1998 disrupted this structure, leading to the collapse of both the New Order regime and the monopoly-based economic system that had sustained the Salim Group’s dominance.