Under Pressure or Careless?

Indonesia has lost twice in the Dieng-Patuha power plants construction dispute. It lost in international arbitration, then it `lost' to the bureaucracy at home.

August 28, 2001

The dispute over the Dieng and Patuha private power projects broke out a long time ago. In international arbitration MidAmerican Energy (MAE) won the case. As the loser, state electricity company PLN is required to pay US$572 million in compensation. In Indonesia's view, this amount is too big for the project cancellation. As the compensation was not paid immediately, the US government, through the Overseas Private Investment Corp. (OPIC), too

...

More Articles