Extractive Industry and Death of Compradors

Kompas/Ryan Rinaldy

The Fleet production, storage, and offloading facility in the Madura Strait, East Java, Wednesday (20/9).

Under President Joko “Jokowi” Widodo\'s administration, we have succeeded in state management of the extractive industry. In the last two years, the government smoothly took over management of the Mahakam Block from Total E&P (France) and Inpex Corporation (Japan) and the Rokan Block from Chevron (United States), and in successfully acquiring 51 percent of PT Freeport Indonesia\'s shares.

Besides stronger control and greater shares ownership, what else can we celebrate from the return of the state to managing the national extractive industry? The death of the compradors. What is a comprador? Who are they? What kind of sociopolitical landscape has led to their demise? Will their demise in the extractive industry lessen their hold on other sectors and strategic industries?