Introduction

The objective in this paper is to evaluate the system of sharing natural resources revenue in Indonesia against the criteria that are most often discussed in international forums. The paper has three parts. First, we examine the importance of the issue and try and place the practice in Indonesian some comparative perspective. Second, we argue the case for and against decentralization of revenues raised from natural resources and consider the constraints to such a decentralization policy. Third, we examine the reform options in terms of the specific fiscal instruments that might ...