High oil prices challenge Indonesia’s economy

Indonesia’s oil troubles are coming home to roost, posing a growing challenge to President Susilo Bambang Yudhoyono’s ability to maintain economic stability.

Indonesia is a member of the Organization of Petroleum Exporting Countries, and oil and natural gas represent one of the country’s largest sources of export revenue. But as a result of red tape, legal uncertainty and past political turmoil, Indonesia has become a net oil importer, as companies shy away from investing in new oil wells or refineries.

International Herald Tribune