ERLIN PUSPITASARI, 071514553017 (2017) THE WORLD BANK’S INFLUENCES ON THE POLITICAL ECONOMY OF GEOTHERMAL LIBERALIZATION UNDER PRESIDENT SUSILO BAMBANG YUDHOYONO ADMINISTRATION. Thesis thesis, Universitas Airlangga.

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Abstract

This study explores the role of the World Bank in influencing the Indonesia’s political economy particularly in governing Indonesia’s geothermal. With the specific task to provide an account of liberalization policy in Indonesia’s geothermal during Yudhoyono administration, the research questions applied are how was the interrelation between the World Bank and the Yudhoyono government in making the liberal geothermal regulatory framework? To some extent, what was the reason behind the making of the liberal geothermal framework? Knowing that Indonesia has been seen as an emerging market for geothermal industry, it is important to mapping out how the World Bank as an influential actor in policy making has integrated to Indonesia’s political economy by bringing the liberal agenda to open the market access. As the liberalization policy instilled by the World Bank has been used by developed countries to exploit Indonesia as Developing Country, World-System theory is used to consctruct the mechanism of this thesis. Upon completion of this research, the author found that the World Bank has a particular pattern of integration by using its foreign loans as the best strategy and the weaknesses of Indonesia has made Indonesia had no option but to accept the concept of liberalization. To some extent, the advanced industrialized countries have gained more positive impacts from financial, expertise and technology interdepences, while Indonesia has become more dependent on economic relationship. Thus, the findings may be useful theoretically and practically. For International Relations studies to know the policy reforms process. As for government officials to examine the outcomes of its liberal geothermal regulatory.

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