Publication

Despite the many ways of "benefit sharing" that local residents can benefit from the presence of extractive activities, Indonesia's natural resource revenue sharing system creates incentives for wasteful spending in resource-rich regencies. This harms Indonesia's economic growth and development. This policy brief has recommended special rules to allow natural resource-dependent regencies to save a portion of their oil, gas, or mineral revenue windfalls for future generations and smooth volatile public spending. This saving can be placed in sovereign wealth funds.