During Dutch Colonial domination, one of the most controversial themes was that why the Indonesian society had failed to generate an indigenous bourgeoisie. Since the post-colonial era, most developing countries are facing three dilemmas: the state building, the formation of social classes, the capital accumulation. For the methodology, the dissertation both takes a“state-center”view and tries to apply an approach to explore the formation of Bureaucratic Capitalist during Suharto time with a view of historical-structure from the concept of state, class and capital. Furthermore, the studies will focus on three fields. First, why over 350 years, the mercantile policy of the colonial regime had failed to penetrate into the whole Indonesia shaping an indigenous bourgeoisie. Secondly, from 1950 to 1965, President Sukarno had taken the state-capitalism as a developmental strategy why Indonesian society still had not found indigenous bourgeoisie strong enough to take responsibility of leading capitalist revolution. Thirdly, after 1965, in the power of Suharto, the state has played a decisive role in the shaping the development of big entrepreneurs in the post-colonial Indonesia. In addition, the studies will review and provide a critical analysis of the works of Indonesia Studies in the West, and continues to dialogue with the contemporary academician in the field.
Key Words: Agricultural Involution, Asian Mode of Production, Pre-capitalism, Dual Economy,
Articulation Theory, State Apparatus, Capital Accumulation, Commercialization, Bureaucratic-Capitalist Class