Debates on the causes of Indonesia's recent democratic decline have mostly focused on institutional, political and attitudinal–behavioural causes. By bringing the rural political economy dimension into this conversation, this article presents another picture of the illiberal turn in Indonesian democracy. Specifically, it examines the implications of elite control over land and coal resources on democratic quality. Based on in-country fieldwork materials and relevant secondary data, it analyses instances of episodic repression, the contraction of democratic spaces and the corrosive effects of coal-fuelled intra-elite clientelism by looking at the elite control of land resources and the influence of political and economic elites benefitting from the coal industry in elections and the broader political arena. Finally, it also discusses the capitulation of key agrarian social movement actors to state interests and its impact on the movement's ability to resist democratic regression. This elaboration shows how the current contour of elite control over rural resources contributes to the declining quality of Indonesian democracy.