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Media business and political business: The Struggle for power towards the 2014 Presidential election in

Ludiro Madu The Department of International Relations Universitas Pembangunan Nasional “Veteran” , Indonesia Email: [email protected]

Abstrak Pemilihan Presiden 2014 telah menunjukkan femomena menarik, yaitu munculnya minat dan partisipasi pengusaha (business people) untuk berkompetisi memperebutkan posisi publik tertinggi di Indonesia. , , Harry Tanusudibyo, dan adalah beberapa nama pengusaha yang mencalonkan diri sebagai calon presiden dan calon wakil presiden. Tulisan ini berasumsi bahwa peningkatan minat untuk terlibat ke dalam politik lebih disebabkan pada kegagalan demokratisasi paska-1998 menghasilkan aturan-aturan main baru mengenai partisipasi pengusaha dalam kontestasi politik. Demokratisasi paska-1998 memang telah berhasil dalam membatasi atau menghilangkan partisipasi militer dalam politik, namun struktur politik baru itu justru telah membuka struktur kesempatan (structure of opportunity) baru bagi pengusaha untuk menjadi politisi. Tulisan ini hendak menganalisis hubungan pengusaha dan politik dalam upaya mendominasi kepemilikan dan penguasaan di industi media, baik cetak, elektronik, maupun online. Dengan menggunakan analisis mengenai bisnis dan politik, tulisan ini menunjukkan bahwa formasi oligarki politik dan media yang telah berpusat di pengusaha dan politisi tertentu tampaknya merupakan upaya tidak langsung mempersiapkan diri dalam pemilihan presiden 2014. Oleh karena itu, argument tulisan ini adalah bahwa demokratisasi telah meningkatkan kesempatan politik bagi para pengusaha dengan kepemilikan dan penguasaan atas media untuk membangun koalisi dengan politisi dalam rangka mendukung upaya mendapatkan kekuasaan pada pemilihan presiden 2014.

Kata kunci: Indonesia, media kontrol, oligarki, pemilu presiden 2014

Abstract The 2014 presidential election has interestingly attracted the interest of several business people to participate in the struggle for presidential power in Indonesia. Jusuf Kalla, Aburizal Bakrie, Harry Tanusudibyo, and Surya Paloh are the examples of those business people who will potentially run for the 2014 presidential candidacy. This paper assumes that the increasing interest of business people in politics is due to the failure of post-1998 democratization in effecting new regulations for the involvement of business people in the political arena. While recent democratization has not allowed the participation of military personnel in politics, the post-1998 democratic structure has built new political opportunity for business people to become politicians. With special reference to Indonesia’s big business in media, this paper seeks to scrutinize the nexus between big business and politicians in their efforts to dominate the media be it printed, electronic, and online. Using the approach of the link between business and democracy, this development points to the formation of political and media oligarchies which have centered around certain business individuals and politicians as the 200 Jurnal Ilmu Komunikasi, Volume 14, Nomor 3, September - Desember 2016, halaman 199-208 preparation for their involvement in the 2014 presidential election. Additionally, analysis on the previous 2004 and 2009 presidential elections are of importance as well in providing the continuation and break-up of coalition patterns among big businesses or conglomerates and politicians. Finally, this paper argues that democratization has increased political opportunity for big businesses in using their media control and ownership for building coalitions with politicians in their quest to capture power in the 2014 presidential .

Keywords: Indonesia, media control, ownership, big business, oligarchy, 2014 presidential election.

Introduction media ownership and control, especially those Different from the previous elections which have been controlled by conglomerate in the post-1998, the 2014 presidential election groups. A conglomerate is de›ned as the has interestingly attracted the interest of several combination of two or more companies or business people to participate in the struggle for businesses which essentially work with each other presidential power in Indonesia. Conglomerates, in creating a ›nal product. Speci›cally, a media especially media business peope, have declared conglomerate describes companies which own their nominations as presidential and vice a number of other smaller companies in various presidential candidates, including Aburizal economic sectors, including media business. Bakrie (Bakri & Brothers Group), Harry The 1998 political reform gave the new Tanusudibyo (owner MNC Group), and Surya political structure of opportunity for several Paloh (Media Group) through Party, Hati conglomerate groups to posses and to control Nurani Rakyat (Hanura) Party, and Nasional various media (Lim, 2012; Nugroho et.al., Democrat (Nasdem) Party respectively. As for 2012). With special reference to Indonesia’s big Dahlan Iskan, the Minister of State’s Owned- business in media, this paper seeks to scrutinize Entreprises and owner of Jawa Pos Group, joined the nexus between big business and politicians in the convention of the ruling Democrat Party for their efforts to dominate the media be it printed, selecting the best candidate for its president. electronic, and online. Using the approach of Another media mogul, Chairul Tanjung who the link between business and democracy, this owns CT Group (Trans Corp) and the Head of the development points to the formation of political government’s National Economic Commision and media oligarchies which have centered around declined his nomination for joining Democrat certain business individuals and politicians as Party’s convention. This development shows the preparation for their involvement in the 2014 that the post-1998 democratic structure has built presidential election. Finally, this paper argues new political opportunity for business people to that democratization has increased political become politicians and, particularly, promoted opportunity for big businesses in using their media themselves for running presidential or vice control and ownership for building coalitions presidential candidate in 2014. with politicians in their quest to capture power in The media business has experienced the 2014 presidential elections in Indonesia. this unexpected democratic political change in Political business is de›ned as Indonesia. The immediate impact of the 1998 conglomerate or big business who actively democratization was liberalization of media participate in political parties for the purpose of which, in turn, led to media industrialization maximizing their political and economic interest. (Tomsa, 2007). This tendency raised the issue on The political behaviour of big business groups Ludiro Madu, Media business and political business... 201 tends to adjust political structure in which they Party has been the representation of the New operate. Under authoritarian ’s rule, Order era in Indonesia. In its effort for selecting political participation of business people was the best candidate for president, the party held infiuenced by the ruling . However, a convention which came up with the failure of the post-1998 democatization gave different both political businesses to be the nominated political structure within which business people candidated from Golkar Party. In his political seems to have more independent and different manouvre, JK cancelled his participation in the political manner from the ruling party. Gomez convention and accepted the invitation of SBY (2002: 3) argues that for running as his vice presidential candidate. “...following democratization in a number The case of JK shows the success of political of East Asian countries, the infiuence business in the ›rst direct democratic presidential of capital over politics has increased election in the country. appreciably. The changing pattern in the The post-1998 democratization has balance of power between capital and frequently declared as the point of departure the state in democratized countries also for the rearrangement of Indonesia’s political, appears to have affected the dynamics of social, and economic structures (Forrester, policy-making and policy implementation, 1999; Manning & van Dierman, 2000; Madu, the form of corporate development, as 2004; Mietzer & Aspinall, 2010; McLeod & well as the fiow of funds from business MacIntyre, 2007). This was also the case for the into politics. Political funding by business media business, including printed, electronic, has contributed to a signi›cant rise in the and online media. The electronic media had phenomenon of “money politics,” that actually been the domain of the government- is the use of money in the political arena owned television company (TVRI or Televisi to secure control over the state in order Republik Indonesia) and of a certain politically to infiuence the distribution of state- high-pro›le business people who were closely generated economic rents. Since political related to the former President Suharto. As for contests are being extremely infiuenced by the printed media, this television media had also access to money, this brings into question been tightly controlled by the government in the quality of democracy...” order to eliminate its criticism to the government. The shift of tight, strict, and lose control of In Indonesia, conglomerate’s participation the authoritarian government to freedom of in political parties can be traced back to the 2004 expression has signi›cantly remarked the post- general elections. There is no doubt that many 1998 political reform in Indonesia. Indonesian politicians have used their position Business people seem to capture for obtaining economic pro›t or the fact that they democratic political system for their political originally have the business background before bene›t. While the military has been restricted shifting their status into a politician. However, for its political activities, business people looked few or, even, no conglomerates has openly at democracy as the opening space for their expressed their political interest by joining non- political expression. The Democratic electoral ruling political parties. Jusuf Kalla and Aburizal system has required politicians who run for Bakrie are two big business who turned to be national leadership to promote their popularity politicians in Golongan Karya (Golkar) Party. It throughout the country. This led to the necessity seems to be such a political reality that member of politicians to have a strong ›nancial back-up of Golkar Party consists of many business people for supporting their campaign. compared to those of other newly established Since the ›rst democratic general election political parties in the Reform era since the in 1999, Indonesia people have the opportunity to 202 Jurnal Ilmu Komunikasi, Volume 14, Nomor 3, September - Desember 2016, halaman 199-208 participate in three votings in each election. The nomination. ›rst is voting for a member of local or provincial The case of Indonesia shows that media parliament. The second chance is voting for conglomerations became the urgent issue which national parliament members. The third voting democratic society has to deal with (Haryanto, is to elect presidential and vice presidential 2007; Cahyadi, 2012;). The conglomeration candidates. The 1999 general election resulted of media seems to build paradoxal tendency in the emergence of Abdurrahman Wahid and of democratization. While the democratic for assuming positions process has been in a transitional phase, it of national leadership. Many members of the lacks the capacity of regulating and limiting national parliament came from business people. conglomerate’s ownership on media and has There was a growing awareness that political put democracy at risk. Media take almost full participation needs much more money for political control in determining issues to be published costs which consequenlty attracted more interests or broadcasted publicly (Haryanto, 2007). of business people to turn into a politician. Being Using their own television and other media, a parliament member gave a different political conglomerate could directly advertise his/her image for business people. Their success in the vision, programs, and other image building within economic sector is strengthened in their political his/her own media without any strict and strong election for parliament member, either in local/ monitoring from government’s institution. provincial or national level. Direct involvement of business people in politics in Indonesia Method reached its momentum with the winning of JK This research uses the descriptive qualitative as the vice president at the 2004 election. As method. Qualitative research method would the running mate of the elected President Susilo try to understand various issues related to the Bambang Yudhoyono (SBY), JK came out as the background of the phenomenon, trying to give ›rst business people who assumed the national more meaning or predict the behavior of social political leadership. or political phenomenon which other persons While the 2009 presidential election perceived to the issues (Denzin and Lincoln, did not manage to result in business people as, 1994: 2). The case of Indonesia is used by either president or vice president, the election focusing on two difference tendencies. The ›rst attracted the political participation of JK in is that democratization increased the power of nominating himself as a presidential candidate. media, particularly in the hands of media owners It is interesting to see political rivalries between or political business. The second tendency is that the then president and vice president for the democratization promoted the concentration of nomination of the presidency for 2009-2014. media ownership and control in the hands of few JK‘s failure for presidential position refiected the conglomerates which, in turn, give more room for political opening for business people for vying the maneuver for political business to take a political highest political position in the country. During role in the 2014 presidential election. This the campaign of the 2009 presidential election, tendency consequently puts democracy at risk. Indonesian politics shows fragmentation within Although democratization boosted the number business people on which presidential-vice of media in Indonesia, this political change presidential candidate they will elect. A Certain also resulted in the danger for democratization group of business people led by Sofyan Wanandi itself. Media’s concentration brought about the openly supported the nomination of former Vice monopoly of information for the interest of the President JK for the presidential position. While media’s owners. other groups of business people also disclosed their political support for SBY and Budiono’s (Media) Political Business in the Making since Ludiro Madu, Media business and political business... 203

1998 Press Licensing System and the issuance of the The case of Indonesia generally shows two Press Law number 40/1999, there was a dramatic difference tendencies about the link between increase in the number of media. There were 873 democratization and media power which radio stations in 2002, 11 television stations, 186 increasingly attracted the interest of political daily newspapers, 245 weekly newspapers, 279 business in controlling the media. The ›rst is that tabloids, 242 magazines and 5 bulletins in 2003 democratization increased the power of media (Gobel and Eschborn 2005:2). in infiuencing public opinion. The diversity Interestingly, the media liberalization in of opinion promoted public awareness on the Indonesia was characterized by a certain media difference meaning of a fact. The increasing in a certain period. In the early years of reform number of media gave the people power to choose era 1998-1999, tabloid was the most favorite the right media for their need of information. media. Starting the year of 2000, tabloid was The second tendency is that democratization vanished due to the lack of advertisement and promoted concentration of media ownership and the shift of reading culture from tabloid to a control in the hands of few conglomerates. This more quali›ed media, including electronic media tendency consequently puts democracy at risk. such as television and radio. Business people Although democratization boosted the number started to invest their money in the electronic of media in Indonesia, this political change media. This shift also indicated the dynamics of also resulted in the danger for democratization printed media business which accounted for only itself. Media’s concentration brought about the 20 percent of those can take pro›t, including monopoly of information for the interest of the Kompas-Gramedia, Jawa Pos, and Femina. media’s owners. In this case, Indonesia’s media Development of printed and electronic conglomerate has the power in managing what media (television) seems to be a paradox. kind of information their media would like to Recently, national printed media has been only broadcast to the public. owned by several media groups such as Jawa After the fall of the Soeharto regime in Pos Group, , TEMPO 1998, political and media climate in Indonesia Group, Media Indonesia, and Republika. Along changed from authoritarian and tight state with the reducing numbers of printed media in control to the current situation which has the national level, we can also see the increasing been characterized by liberalization, a highly number of electronic media, especially television competitive market, and signi›cantly less state stations. In the era of Suharto’s New Order, intervention (Heryanto and Adi 2001:1). The Indonesian television media had only been growth of Indonesian media was initially marked dominated by the government-owned television, by the abolition of the Press Licensing System namely TVRI. The last ten years of Suharto’s (SIUPP) through President B.J. Habibie’s policy rule had shown private television companies in 1999 (Tomsa 2007:3). The following president, which were established by people closed to Abdurrahman Wahid, unexpectedly eradicated the ›rst family. In 1989, Bambang Trihatmojo, the communication ministry and issued the Press Suharto’s second son, established RCTI as the Law Number 40/1999 and Number 32/2002. ›rst private television company in the country. In The Democratic commitment of the latter was the following years, other television companies supported by the establishment of the Indonesian followed to be aired by other ›rst-family Broadcasting Commission (Komisi Penyiaran members, including SCTV, Indosiar, TPI, and Indonesia/KPI) as the government’s partner Lativi. for monitoring the behavior of media on the The mushrooming television companies application of democratic culture for the interest raised optimism of media Indonesia (see of the public. Soon after the abolition of the table 1). Although the initial development of 204 Jurnal Ilmu Komunikasi, Volume 14, Nomor 3, September - Desember 2016, halaman 199-208 media business shows the ownership has been group in media business outside the circle of the concentrated around politically connected politically connected business group of Suharto’s business people of Suharto’s family, this family. With their wide-range control of various electronic media took the interest of other media business, those business groups can also business people. In 2000-2001, ›ve national be called as or tycoon. private companies operated, including Metro The liberalization and industrialization TV, TV 7, Trans TV, Lativi and TV Global. In of media have initially resulted in two opposite regional level, several local business people also opinions among Indonesian media workers or established local private television, such as JTV analysts. The ›rst insight comes from those Surabaya, RTV , Jak TV , and who view the media industrialization as a good Bali TV Denpasar. One of the most interesting sign of the decreasing role and infiuence of reasons of this television business has been the the politically-connected conglomerates, with increasing number of advertisement (Bisnis particular reference to those which closely- Indonesia, 5 May 2002). related to the Suharto family. The emergence of Table 1. Indonesia’s media industrialization in television business

Source: Merlyna Lim, The League of Thirteen: Media Concentration in Indonesia, http://merlyna. org/?p=2580, diakses pada 4 September 2012.

Following the increasing number of television Mahaka Group, Trans Corpora, and the MNC business in the democratic era, media business in Group have raised the issue of the increasing Indonesia has gradually, but surprisingly, showed capitalistic considerations in building the media that the media ownership has concentrated in business ---especially those who built television several groups of big business or conglomerates media empire--- instead of political motives of (Nugroho et.al, 2012; Lim, 2012). Similar to the elite groups. Lim’s research, Centre for Innovation Policy On the other hands, the emergence of the and Governance (CIPG) found that 12 groups of new media tycoons also refiected the potential big business have dominated almost all channels danger of the on-going democratization in of media in Indonesia (see table 2). They are Indonesia in the name of media industrialization, MNC, Media Group, Jawa Pos Group, Kompas- especially with the issue of the concentration Gramedia Group, Mahaka Media Group, Elang of media ownership in the hands of several Mahkota Teknologi, CT Corp, Visi Media Asia, conglomerates. The economic motives of Media Group, MRA Media, Femina Group, building media empire have inevitably put Tempo Inti Media dan Beritasatu Media Holding. democratic values or culture into risk. In the These 12 big business groups have inevitably realm of journalism, the media liberalization con›rmed the emergence of the new business which resulted in the emergence of the media Ludiro Madu, Media business and political business... 205

Table 2. Big business’ ownership and control in media in Indonesia

Source: Yanuar Nugroho (et.al.), Memetakan Lansekap Industri Media Kontemporer di Indonesia, Centre for Innovation Policy and Governance, Jakarta, 2012. tycoons is a new threat to the press freedom. The developed their signi›cant control and ownership media conglomerates are an opposing threat to of media industry. This tendency shows that press freedom in itself, leaving a large imbalance Indonesia’s democratization has unlikely been of power with limited checks and balances (the able to manage and arrange media industry for Jakarta Globe, 2012). the sake of public interest. The above-mentioned development in media industrialization shows the way Business’ participation in the 2014 Presidential democratization has generally created Election the structure of political opportunity for The increasing political interest of business conglomerates for increasing their business people, particularly media big business or in media industry without any control of the conglomerates, has been refiected in their government (Nugroho, 2012). In the name of potential participation in the 2014 presidential liberalization, these media conglomerates made and vice presidential election. At least, ›ve use their power of capital to appropriate the media moguls have declared their interests for on-going Indonesia democratic reform for their both political positions, including Aburizal own pro›t. Following the logic of capital, these Bakrie (the owner of Bakrie & Brothers and conglomerates have accumulated their economic Golkar Party’s leader, declared presidential pro›t they gained from media business (Irianto, position), Harry Tanusudibyo (owns MNC 2005; Madu, 2012). They did not stop their Group and Hanura Party nominated him for vice media ownership in a certain media sector. They, president), Dahlan Iskan (owns Jawa Pos Group, however, have strongly tried to concentrate all Minister of State’s Owned Enterprise, joined media sectors within their conglomerations. Democrat Party’s convention for its presidential These practices of appropriation have, in turn, candidates), Surya Paloh (owner of Media 206 Jurnal Ilmu Komunikasi, Volume 14, Nomor 3, September - Desember 2016, halaman 199-208

Group, founder and presidential candidate from has strongly tried to oppose negative coverage Nasional Demokrat Party) (see table 3). Other on Sidoarjo mud-fiow disaster. Bakrie has been business people, but without ownership in the predicted to promote his political intention for media industry, who are interested in the 2014 running a presidential candidate in the next 2014 presidential election are Jusuf Kalla (Kalla election via his media group. The massive use Group) and Gita Wirjawan (Ancora Group). of media for the political campaign has made Gita Wirjawan, who was the Minister of Trade, Indonesia’s Broadcasting Commission issued nominated himself for the presidential candidate warning for several television companies, such through the internal convention of Democrat as Metro TV, TVOne, and MNCTV. Party. Of course, the 2014 presidential election One of the most problematic issues is also attracted other candidates with a military about the content of media (Masduki 2014). background, such as , Prabowo, Joko Basically, media independence in general Suyanto, and Endriastono through different election, including the 2014 Presidential election political parties. is a must. The problems in its contents, however, Tabel 3. Big business, media ownership, and political parties No. Owner Business Group Television Political Party Nomination T V O n e , 1 Aburizal Bakrie Bakrie & Brother Golkar President ANTV M N C T V, 2 Harry Tanusudibyo MNC Hanura Vice President RCTI 3 Suryo Paloh Media MetroTV Nasdem President 4 Dahlan Iskan Jawa Pos JTV Democrat President TransTV, 5 Chairul Tandjung CT Corp Democrat President Trans7TV These conglomerates have used occur when media are used by the owners for media within their group for marketing their practical politics. The case of Indonesia’s political political interests. Surya Paloh, for instance, business in the struggle for power through the has frequently used his media ---Metro TV 2014 Presidential election interestingly portrayed and Media Indonesia daily--- for voicing his dynamic frictions among media which was Nasional Democrat (Nasdem) Party. Another potentially steered by media owners. Their direct media tycoon is Harry Tanoesoedibyo, the owner and indirect participation of political business of MNC Group. Possessing several television in the elections also revealed the problems of stations (RCTI, Global TV, MNC TV with its provocative contents of media which were based several channels), Seputar Indonesia’s daily, and on the political inclination of media owners. radios would make him easier to promote his Bakrie’s media of TV One, for instance, directly nomination as Vice Presidential candidate and was directly in oppositional stance from Paloh’s his Hanura Party. Looking at political strategy of media of Metro TV, including other media, such Harry Tanusudibyo was very interesting. Harry as Kompas TV, MNC TV, AN TV. This tendency Tanusudibyo formerly joined Surya Paloh in also occurred in other forms of media in Indonesia , but internal friction led the ›rst during and after the 2014 Presidential election as move to Hanura Party with its chairman Wiranto the political consequences of the media owners’ run for the presidential candidate and Tanusudibyo political support to Presidential candidates, ie. for vice presidential candidate. This is also the and . case for Aburizal Bakrie with his media group The momentum of political opportunity Ludiro Madu, Media business and political business... 207 was presented by the result the 2004 Presidential channeled through the yayasan which Election, although it failed in bringing about the president controlled. A large part political regulation and agreement. The ›rst direct of Golkar’s funding from the business and democratically-elected Presidential and Vice community and other sources...” Presidential Election raised and Jusuf Kalla respectively for However, the democratic political system the President and Vice President of Indonesia. has unlocked their political activities by putting The 2004 election presented the ›rst business themselves in different political parties. Business people, Jusuf Kalla (generally called ‘JK’), in people found the democratic political system the political position of Vice President. Both has made them possible to join and become the president and vice president were initially agreed leader of a political party outside Golkar Party. on dividing the authority of managing economic Media owner with their various political interests issues in the hands of JK and political-security used their television to advertise their pro›le affairs in the hands of SBY. They, however, and compete with other for political power. failed in sustaining the division of the authorities Media mogul became the chairman, infiuential and in arranging regulations for politicians to do member, and, of course, the founder-and-owner business and for business people to have political of a political party. The fact that the ruling activism. The further political development also party, Democrat Party, does not have media shows that several media tycoons revealed their (particularly television company) or no media political inclinations for promoting their interests has directly declared its support for the party has in the 2014 presidential election (Adrianto, 2012; made it dif›cult for struggling and maintaing its Madu, 2012). political image. In its rivalries to other political This also ›gures out the general pattern parties, almost all conglomerates tend to be of business people’s political activity in, both critical of various government’s policies. authoritarian and democratic political system. In an authoritarian regime, business people did Conclusion not openly express their political interest. They Democratization has increased political quitely organized themselves in a business opportunity for big businesses in using their media association which has been dictated collectively control and ownership for building coalitions and personally by the government in order to with politicians in their quest to capture power in follow and support the ruling party, Golkar. the 2014 presidential elections in Indonesia. On During the new order era, it is impossible to behalf of democratization, Indonesia’s media has ›gure out the support of business group towards signi›cantly increased in numbers and attracted non-ruling political parties. Otherwise, the Indonesia’s conglomerates to dominate media conglomerates would have found them dif›cult ownership and control. This led to the increasing to develop their business. Eklof (2002: 237) position of their power bargaining, particularly revealed that in attracting politicians with the purpose of “During the Suharto era, carefully staged building a political coalition. Business people general elections were held every ›fth also managed to take advantage of using political year, which invariably produced large parties as their political vehicle for running victories for the government’s electoral presidential and vice presidential candidates. vehicle, Golkar. Golkar’s main patron Approaching the 2014 presidential election, was President Suharto, who provided Indonesian politics shows media tycoons has the organization with ›nancial resources, taken the most bene›t of democracy for vying much of which consisted of contributions with other tycoons and candidates for the highest from the corporate sector and which were political position in the country. There is no 208 Jurnal Ilmu Komunikasi, Volume 14, Nomor 3, September - Desember 2016, halaman 199-208 more such a political ‘taboo’ for business people Lim, Merlyna. (diakses 4 September 2012). to struggle for presidential or vice presidential The League of Thirteen: Media position in Indonesia. Concentration in Indonesia. http://merlyna.org/?p=2580. References Madu, Ludiro. (2004). “The Politics Adrianto, Fadjar. (2012). “Pemilihan Presiden: of Conglomerates in Pebisnis Calon Presiden 2014”. Jakarta: Democratising Indonesia: New Warta Ekonomi. 23 Agustus-5 September. 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