How can a loosely connected protest coalition survive repeated repression, the imprisonment of its leader, organizational fragmentation, and severe resource constraints, yet eventually develop into a governing party? This question lies at the center of the development of Parti Keadilan Rakyat (PKR), one of the most influential political parties in contemporary Malaysia. Despite PKR’s central role in challenging the long-standing dominance of Barisan Nasional (BN) and its eventual rise to government, its organizational development has received relatively limited attention in the literature. This article examines the formative stage of PKR from 1998 to 2007 through the lens of party institutionalization. Drawing on Randall and Svåsand’s framework of institutionalization while incorporating Panebianco’s concepts of party genesis, charisma, and collective and selective incentives, the article focuses on three dimensions of institutionalization: decisional autonomy, systemness, and value infusion. The analysis demonstrates that PKR did not emerge from a single dominant organization. Rather, it developed through the convergence of former UMNO politicians, Islamist activists, socialists, NGO activists, and participants in the Reformasi movement. Because none of these actors possessed sufficient organizational resources to dominate the party, decisional autonomy developed to a certain extent during the formative period. By contrast, systemness remained limited. Leadership roles were unstable, organizational interactions remained fluid, and the merger process between Parti Keadilan Nasional (PKN) and Parti Rakyat Malaysia (PRM) revealed the incomplete institutionalization of organizational relationships. Under these conditions, value infusion became critical to organizational survival. Lacking access to state resources and selective incentives, PKR relied heavily on collective incentives associated with reform, justice, and opposition to the BN regime. In this context, Anwar Ibrahim’s charisma played a crucial role. However, unlike Panebianco’s notion of “pure charisma,” Anwar’s repeated imprisonment constrained his capacity for continuous direct leadership. His significance therefore rested not only on active political intervention but also on his role as a symbolic resource that provided legitimacy, cohesion, and a shared point of identification for diverse groups within the party. The article argues that PKR’s formative development cannot be understood simply in terms of the presence or absence of institutionalization. Rather, decisional autonomy, systemness, and value infusion advanced at different speeds and to different degrees. The case suggests that party institutionalization may proceed unevenly across its different dimensions and that charismatic authority can contribute to party consolidation not only through direct leadership but also through its symbolic role under conditions of political repression.
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