Economic and Legal Views of Depletion Premium in the Extraction of Petroleum Resources
Following the end of World War II and the colonialism era, developing and less developed counries became more aware of the need to protect the natural resources in their region, and started to strife for political independence. In the course of this development there is no doubt that there countries still need assistance from developed countries, which in this case are “represented” by multinational companies. The relationship between these two entities – countries and multinational companies – has been growing in a unique way. This condition influences the growth of the protection of its own interests that pertain to this natural resources matter. Before the issue was recognized by international law, Indonesia’s 1945 Constitution already dealt with it. The globalization era has changed the point of view of countries on this issue and thus in the manner they are implementing their interests. This article addresses the relation between the Indonesian Government and multinational companies in Indonesia, especially as reflected by Law No. 22 Year 2001 and from the international law’s perspective.
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