A Longitudinal Analysis of the Indonesian Production Sharing Contracts (Psc): The Question of Economic Accountability

Parulian Sihotang

Abstract


The article objective is to describe a longitudinal analysis of the Indonesian Production Sharing Contracts (PSC). Article presents the history of petroleum contractual agreements in Indonesia, selected indicators to evaluate PSCs performance, the statistical techniques used to analyze the data, statistical results, operational indicators, discussion of results and linkage to concept of accountability. The conclusion is the longitudinal study on the PSCs performance over the last 30 years have indicated that the current structure of the agreements seemed to have failed in supporting the dynamic contractual accountability between the host country and the FOCs. The PSCs lacked the capability to promote both host country and FOCs’ interests in a fair and reasonable way.


Keywords


Production Sharing Contracts (PSC), contractual accountability

Full Text:

PDF

References


Aharoni, Yair. 1986. The Evolution and Management of State Owned Enterprises. Cambridge, MA.: Ballinger Publishing.

Anoymous. 2001b. “Liberalising the Oil Industry,” Jakarta Post. October 25th. (www.thejakartapost.com)

________. 2001b. “Jakarta Aims to Liberalise Oil and Gas Sector,” Financial Times Limited, URL:http://news.ft.com, 24.10.2001.

Barnes, Philip. 1995. Indonesia: The Political Economy and Energy. Oxford: Oxford University Press for the Oxford Institute for Energy Studies.

Barrows, Gordon. 1993. Production Sharing in Indonesia, 1966 to 1993: Evolution and Trends. Houston: Institute for International Research.

Bee, O.J. 1982. The Petroleum Resources of Indonesia. Kuala Lumpur: Oxford University Press.

Bennett, R. and J. Sellgren. 1992. “The Role of Local Government in Economic Development,” in King, D (eds), Local Government Economics in Theory and Practice. London: Routledge.

Bindemann, Kirsten. 1999. Production Sharing Agreements: An Economic Analysis. Oxford: Oxford Institute for Energy Studies.

Briston, R.J. 1984. “Accounting Standards and Host Country Control of Multinationals,” British Accounting Review. 16(10), Spring, pp 12-26.

Fox, A.1974. Beyond Contract: Work, Power, and Trust Relations. London: Faber.

Hove, M.R. 1986. “Accounting Practices in Developing Countries: Colonialism’s Legacy of Inappropriate Technologies,” Journal of International Accounting. 22, Fall, pp. 81-100.

Ikenberrry, J. and Kupchan, C. 1990. “Socialization and Hegemonic Power,” International Organization. Vol.44. No.3. Summer, p.3.

Johnston, D. 1994b. “International Petroleum Fiscal Systems: Production Sharing Contracts,” Petroleum Accounting and Financial Management. Vol.13, No.2, pp. 24-75.

Korten, D.C. 1995. When Corporations Rule the World. London: Earthscan.

Laughlin, R. 1996. “Principals and Higher Principals: Accounting for Accountability in the Caring professions,” in Munro, R. and Mouritsen, J. (eds) Accountability: Power, Ethos, and The Technologies of Managing. International Thomson Business Press.

Machmud, Tengku N. 2000. The Indonesian Production Sharing Contract: An Inverstor’s Perspective. The Hague: Klulwer.

Mahmud, Mustafa B. 1997. “Accounting and the Economic Development of the Oil and Gas Sector in Libya: Historical Review, Theoretical Analysis and Empirical Investigation,” Unpublished PhD Thesis, University of Dundee.

Mikesell, Raymond F. 1971. Foreign Investment in the Petroleum and Mineral Industries: Case Studies of Investor-Host Country Relations. Baltimore: Johns Hopkins Press for Resources for the Future.

MacKay and Mackay. 1975. The Political Economy of North Sea Oil. London: Martin Robertson.

Oon, K.C. 1986. The politics of Oil in Indonesia: Foreign Company – Host Government Relations. Cambridge: Cambridge University Press.

Pane, S.Z. 2001. “Pertamina, Expanding The Global E and P Reach.” Unpublished paper, 6th Annual Third Millennium Petroleum 2001, Global Pacific & Partners, May 2001.

Parera, M.H.B. 1989. “Accounting in Developing Countries: A Case of localised uniformity,” British Accounting Review. 21(2), pp 141.

Rochmat, Rudioro. 1981. Contractual Arrangements in Oil and Gas Mining Enterprises in Indonesia. Sijthoff & Noordhoff, The Netherlands.

Ryan, B.F. and Joiner B.L. 1994. MINITAB Handbook. Duxbury Press.

Sihotang P. and Russell A. 2001b. “New Oil and Gas Law: Threat to Government?” The Jakarta Post, October 29.

Stewart, J. 1984. “The Role of Information in Public Accountability,” in Hopwood, A and Tomkins, C (eds) Issues in Public Sector Accounting. Oxford: Philip Allen.




DOI: http://dx.doi.org/10.21512/tw.v4i2.3812

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.


The Winners

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.