Progress on corruption cases against is excruciatingly slow and capricious. These developments have shaken most analysts' faith in the reform credentials of the Wahid administration. U.S. companies have invested heavily in the petroleum sector. With domestic demand for petroleum fuels expanding, Indonesia will become a net importer of oil by the next decade unless new reserves are found. The state owns all oil and mineral rights.
Foreign firms participate through production-sharing and work contracts.
Although minerals production traditionally centered on bauxite, silver, and tin production, Indonesia is expanding its copper, nickel, gold, and coal output for export markets. In mid-1993, the Department of Mines and Energy reopened the coal sector to foreign investment, with the result that the leading Indonesian coal producer now is a joint venture between U.K. firms BP and Rio Tinto. Total coal production reached 74 million metric tons in 1999, including exports of 55 million tons. The Indonesian Government hopes to surpass 100 million metric tons of coal production in 2002. Since the late 1980s, Indonesia has made significant changes to its regulatory framework to encourage economic growth.