The Indonesian Petroleum Industry: Current Problems and Future Prospects∗

Abstract
The world price of oil weakened during 1985 and fell sharply in the first few months of 1986. This paper discusses the balance of payments and budget implications of these trends and looks at the long term future of Indonesia 's oil and gas sector. Issues analysed in detail include contractual arrangements with foreign companies, exploration activities, and developments in marketing, pricing and refining. The paper concludes with a discussion of natural gas developments.

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