Arsegianto creator Shrestha, Ram M. Chairperson Foell, Wesley K., Co-Chairperson Mora, Jean-Claude Examination Committee Tabucanon, Mario T. Examination Committee Saeed, Khalid Examination Committee Rudd, Dale F. Examination Committee The Government of Japan Scholarship Donor text series technical report th Bangkok Asian Institute of Technology 1991 continuing eng 1 v. (various pagings) The development of petrochemical industry is a part of the industrial development program in Indonesia. Considering the comparative advantage of the availability of oil and gas, which are the precursors of most petrochemical products, in the country, the industry will be based on these indigenous resources. Eventhough a master plan for the petrochemical industry has already been established, the policy that will guide the development of the industry has not yet been formulated. This study is intended to set a procedure for policy formulation and produce an analytical tool for the policy assessment. Following the procedure, various policy alternatives are formulated for the petrochemical industry and the gas and oil sector. Based on the problems and the policy formulated, an integrated framework linking the petrochemical industry, the oil and gas sector, and the economy was developed. Basically, the model is based on system dynamics approach, which is suitable for the modeling of a social system. Statics model is also used to calculate the :indicators which :involve a great number of mathematical manipulation. Two statics models used in this study include t he Leontief input-output and mathematical programming. Combination of the two paradigms, statics and dynamics, produces a more practical and detailed model. Experimentation of different policy alternatives is carried out to examine the short-run as well as long-run policy implications on the performances of the petrochemical :industry and oil and gas sector. The results show that a strategic industrial policy, which protects the petrochemical industry, is needed for the development of the :industry. Providing the subsidy on naphtha or gas feedstocks, and imposing a high tariffs to the chemical imports are necessary to put the olefin plants on stream. On the oil and gas sector, the country also foresees oil shortages in the near future under current policy. Incentive of increasing the oil profit share to the oil companies will be an effective policy to boost the exploration as an effort to maintain the proven oil reserves from rapid depletion. A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Technical. Science, School of Environment, Resources and Development Thesis (Ph.D.) - Asian Institute of Technology, 1991 Petroleum chemicals industry Indonesia Asian Institute of Technology. http://203.159.5.9/ait-thesis/detail.php?q=B17423 http://203.159.5.9/ait-thesis/detail.php?q=B17423 170699 20260818172136.0