Studies of Indonesian politics have long focused upon the military and the bureaucracy because it is within these institutions that formal power is located, not the parties, unions, chambers of commerce or corporations. However, such an approach can neglect the powerful influences exerted upon the state by social and economic forces. This important and controversial book, originally published in 1986, examines the way in which one of these forces, capital, has emerged in the preceding two decades as a major influence upon the state, its officials and policies. The emergence of the capitalist class is examined, along with its internal divisions and conflicts and its relations with the state. In particular, attention is given to the fusion of the ruling strata of state officials and the capitalist class - the potential basis for a new ruling class. This is set against the weakness of capital caused by its division into domestic and international, state and private, Chinese and indigenous. These factors are in turn set in the context of international influences - the rise and fall of the oil boom, the activities of the IBRD and IMF, the decline of export earnings and the fiscal difficulties of the state.