Since the downfall of Soeharto in May 1998, Indonesia's political system has experienced a significant shift of power from the once omnipotent centre to the regions. This phenomenon is not only related to the decentralisation program initiated by the Habibie government in 1999, it is also a result of the so far unsuccessful attempt to establish political parties as the main actors of institutional decision-making at the centre. With political leaders struggling to enforce party policies in regional branches, local politics has become the domain of bureaucratic and business-related power brokers. It has become the exception rather than the rule for party functionaries to gain the top positions in the provincial and kabupaten (district) governments. Instead, influential business people or bureaucrats exploit internal party splits to run their own campaigns for political office.

Once elected as governors or district heads (bupati), these entrepreneurs and bureaucrats are able to take a more independent stand towards the central administration than was possible during the New Order period, thanks to new political powers and additional funds generated by the local autonomy legislation. They remain vulnerable, however, to the complexities of their home regions. The often shaky political coalitions that allow them to grab power are also the most serious threat to their continued rule. Local legislatures have proved capable of throwing out local and provincial government leaders only weeks after electing them. Often, the payment of bribes to fellow political players is the only effective means of maintaining power.

Given the weak foundation of political leadership in the regions, it is essential for power-holders to secure the support of the two main pillars of the previous regime, the bureaucracy and the Indonesian National Army (TNI). The bureaucracy, however, has lost the solidity that was its trademark during most of the New Order period. Governors and bupati often view their subordinates as possible challengers to their leadership, and more than once have sacked bureaucrats suspected of harbouring plans to run against them at the next election. Confronted with demanding and at times hostile parliaments, as well as power struggles within the bureaucracy, local power-holders often turn to the TNI for help. In extreme cases involving, for example, the impeachment of an executive leader or a disputed election result, the security apparatus may in fact be the only institution capable of keeping an incumbent in power.