The Role of State in Nationalization of Indonesia Alumunium Corporation

Abstract

This article explains the extent of the state’s role in the nationalization of Inalum Corporation, two levels i.e central government and local government levels. Data and information was gathered by qualitative research. In-depth interviews was conducted with officials at the central and local governments, as well as with civil society and investors. This study argues that, in the nationalization of Inalum, the state was not autonomous in decision making at the local level. This is due to the fact that it did not pursuit and serve its own interest for maximum share of the profitable company. The state serves as a tool to maintain social cohesion in order secure capitalit’s economic interest. in this case on the other hand, at the central level, the state demonstrate its commitment to national interest in nationalizing the prospective company and sharing the ownership with the local