The financial system in Indonesia has been strongly influenced by developments in the petroleum sector, which accounts for more than half of export receipts and of public sector revenues. In the 1970s, the expansion of oil revenues contributed to a rapid growth in real gross domestic product (GDP), averaging 8 percent annually, and to a sharp increase in domestic savings, from 12 percent of gross national product (GNP) in 1971 to 26 percent in 1980. The oil boom was also reflected in higher inflation, with the GDP deflator rising by an average rate of 16 percent a year between 1974 and 1982. The concomitant expansion of the financial sector was sizable, both in terms of volume of transactions and in the range of financial services. The situation changed drastically in 1982–1983, however. Declining oil exports contributed to a marked weakening of the external accounts and triggered a comprehensive adjustment effort that was initiated in 1983. Principal features of this effort included a 28 percent depreciation of the exchange rate, the streamlining of public sector subsidies and investment programs, and a reform of the tax system aimed chiefly at increasing nonoil tax revenue.