Joint effort: A gas station in Kuningan, South Jakarta. Good oil and gas management means managing the resources to provide optimum results to the owner of the natural resources, the state, but also providing protection and legal certainty for investors. JP/Ricky Yudhistira

For investors, the law seems to create more uncertainty rather than guaranteeing the sanctity of contracts.

The falling price of crude oil in 2015 to below US$50 per barrel provides an opportunity for Indonesia to significantly reduce its trade deficit by cutting its huge oil import bill. Though, at first glance, tumbling oil prices are economically beneficial, there are also negative implications that may undermine the Indonesian economy, since the tumbling oil prices will slash revenue from gas and oil exports, negating the opportunities and benefits.

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