Link to teaching case: 

Abstract: 

In the fall of 1986, the World Bank offered the government of Indonesia a loan of approximately US $200-250 million for highway construction in the capital city of Jakarta and the country's other four largest urban centers. It was an attractive proposal: plummeting world oil prices had squeezed the national treasury, which had derived about 60 percent of its revenues from Indonesian oil profits. But for much the same reason, Indonesia's Ministry of Finance felt compelled to find new revenue sources to repay the loan.

Author(s): 

Linda Kincaid

Publisher: 

Harvard Kennedy School

Pub date: 

Wednesday, January 1, 1986

Country: 

Topic: