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List of figures ix
Acknowledgments x
1 The Impact of the Foreign Company on Government Policies in Less-Developed Countries 1
The problem of perception 1
Implications for government policy 5
The environment of the less-developed country 12
The special case of the mineral industries 17
2 The Indonesian Petroleum Industry: Form and Content of Agreements 23
Indonesian attitudes to foreign investment 23
The petroleum industry as a case study 25
The general legislative framework 28
The traditional concession system 34
Work contracts as a modern concession arrangement 37
The production-sharing contract and its derivatives 41
3 Financial Provisions and Consequent Areas of Dispute 51
Financial provisions governing petroleum extraction 51
Government income through royalties and taxes 53
State participation in the extractive operation 59
Other financial problems 68
Matters of depreciation 73
Balancing host- and home-country interests 80
Tax incentives as part of a financial package 84
4 Provisions for Development and National Control 90
The extractive operation as part of overall development 90
Establishing external connections with the wider economy 92
Restricting the economic contribution of the foreign company 112
Managing the extractive operation 115
The rate of extraction and its implications 122
5 Problems of Negotiation and Contractual Change 129
Dispute settlement within an evolving process of contract relations 129
Resolving disputes through arbitration 133
Formal adjustment of the contractual relationship 135
The need to facilitate change 141
6 Organisational Structure and the Negotiating Process 159
Thestructure of the industry 159
The problem of accountability 164
Approaches to negotiation 176
7 Some Regional Considerations for South-East-Asian Oil-Producer Governments 187
The search for appropriate models 187
The potential for agreement: cooperative measures by governments 208
The potential for conflict: disputes over territorial rights 212
8 The Viability of Transnational Mineral Agreements 220
Notes 234
Select bibliography 249
Index 251
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David White
reviewed The Politics of Oil in Indonesia: Foreign Company-Host Government Relations on November 27, 2012
The Politics of Oil in Indonesia: Foreign Company-Host Government Relations
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