Red-tape stunting Indonesian oil exports

The New York Times suggests that unnecessary red-tape may be partially to blame for the poor performance of Indonesia’s energy exports:

Red tape, legal uncertainty and past political turmoil have turned Indonesia into a net oil importer, and companies have shied away from investing in new oil wells or refineries… Pessimists say the bureaucracy is holding up many of the foreign investment pledges being made. "All the hoopla over F.D.I. coming to Indonesia hasn't come through," said Harry Su, head of research at BNP Paribas in Jakarta, referring to foreign direct investment. New toll roads and other infrastructure projects, for example, are being held up as bureaucrats and investors wrangle over terms, analysts say.

This negative trade balance is particularly startling for an OPEC member, the ‘E’ of course standing for petroleum ‘exporting’ country.