Abstract

The relation between Natural Resource and Political Economic Growth is a famous issue to discuss by scholars. By the Neo-liberalism theory suppose: a developing country has abundant resources, it would become a well-developed industrial country. But this point of issue was challenged by others school in 1980s.These scholars think: ”Resources didn't bring the well-developed in the developing country, on the contrary became a ”Resource Curse”.In Indonesia case, petroleum was the major of Indonesia's fiscal income , but the performance of petroleum resource’s income did not have a great help for Indonesia's economic development. One can find the cause of this condition, the allocation of petroleum in Indonesia is not only an economic but also a political issue. The petroleum resource and uneven economic growth are closed related to the role of Pertanima. Base on this background, one will focus on the petroleum resource for the effect of political economy in country's development. And one will try to proof that, Pertanima is a tool for governor to integrate politics and economy in a new order period, and it become the abundant petroleum resource cannot bring a well development but a ”Resource Curse” to Indonesia.In structure of this project, one will set up the research structure by literature review in the beginning. And then one will discuss that, why Indonesia which has abundant petroleum resource in the control of Pertanima emerges ”Resource Curse”, by the dimension of Political Economy. After the discussion about the Pertanima and ”Resource Curse” in Indonesia, one will use the ”New institutional Economy theory” to discuss the changing of institute on process of democratization in Pertanima and the allocation of petroleum resource. And one will get a conclusion at last. One considers that, if Indonesia want to close to the fifth BRICs in the future, it has to pursue the higher economic growth and reduce the gap between itself and developed countries, so it must reform the allocation of petroleum resource as soon as possible. Only transfer ”Comparable Advantage of Resource” to ”Competitive Advantage of Resource,” it would be a better strategy for state's development.

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