Oil troubles

What does an increase in the price of oil do to a country with a substantial trade surplus in oil and gas? For Indonesia, where net sector exports amount to 3% of GDP, the answer might be surprising. Boom times in the country’s biggest industry threaten to cause an economic unravelling. The rupiah fell against the dollar by as much as 15% in three weeks. And the Jakarta stock market index dropped by 16% in a month. The markets were calmed – at least for now – by a 0.75% increase in the central ...