Abstract:
The Political Decentralization era in Indonesia has not necessarily brought in progressive institutional changes toward a more democratic society at the local level. When social capital is embedded in the ceremonially warranted pattern of behaviour, namely patrimonial behaviour, the increase in social capital is restricted within the business-bureaucrat-politico networks or the local political oligarchy. As a result, the increased in social capital at the local level will likely be wasted on collecting rents.
