SQLDeveloper ver 1.1.is a Java Product, much like JDeveloper. Unfortunately it does not seem to update java path automatically.
After Installing JDK in linux, open the file sqldeveloper.conf (path: $ORACLE_HOME/opt/sqldeveloper/sqldeveloper/bin) and modify the parameter SetJavaHome to point to the actual path where jdk resides.
Ex: I had installed JDK in /usr/java directory. So my entry for SetJavaHome is /usr/java/jdk1.6.0_18
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