Publications

Indonesia’s resource wealth is among the world’s greatest. Yet only a few professional economic studies have devgted attention to the economic problem of studying the efficient allocation of Indonesian and non-Indonesian resources to develop the natural assets of the country. Moreover, although an economic analysis can shed substantial light on the public and private capital budgeting decisions that will influence the rate of development of Indonesia’s natural assets, there is the inevitable need to assess the impact of political choices on economic efficiency particularly with respect to the development of Indonesian oil and gas and the industrial structure that has developed under alternative public policies. More fundamentally, under conditions of limited supplies of domestic capital, the focus should be on those determinants of the supply of external capital - including direct foreign investment - in Indonesia. Focus on the role of oil and gas in the long term economic development plans of Indonesia must consider the short term performance of Indonesia’s balance of payments and jointly those factors affecting the supply of oil and gas and the demand for this oil and gas in the future. The long run wealth development of Indonesia will depend upon its energy resources.