The subject of this study is the Indonesian Production Sharing Contract as defined and described in the following chapters. However, it will be useful to compare the PSC with the Malaysian PSC and the Chinese hybird contract in order to obtain some general insight from the investor's perspective into how these two major petroleum-producing countries managed the relationship with their foreign investors.



The scope of this study is limited to Production Sharing Contracts in the petroleum industry in Indonesia and how these have evolved over time since the introduction of the IIAPCO prototype in 1966. The study also investigates what, from the point of view of the investor, may need to change under reformasi.