The Karaha Bodas case will some day be remembered as clear proof that the Indonesian government is incapable of handling business disputes containing elements of corruption, collusion and nepotism. This complicated dispute involves the US-based Karaha Bodas Company (KBC), Pertamina and US$261.1 million, the compensation Pertamina must pay KBC as ruled by the International Arbitration Court in Switzerland.

The ruling was passed 18 December