Turning petro dollars back on: A game theory approach
Darmawan Prasodjo, Arcandra Tahar, and Erwinsyah Putra
Oil and gas exploration is booming worldwide due to prices increasing to around US$100 a barrel. The revenue generated by this price is helping some, but for Indonesia’s dwindling oil sector and increasing domestic demand, oil subsidies are increasing by 35 percent, or roughly $15 billion.
Although Indonesia has worked hard to expand economic activity in other industries, petroleum still...