Pertamina obstinacy does Indonesia no favours

State-owned oil giant continues three-year appeal against international court rulings on Karaha Bodas dispute.

Ask senior officials at Australian mining company Rio Tinto, Canadian life insurers Manulife and probably any foreign bank that has ever chosen to invest in Indonesia about the pros and cons of doing business there. It is highly likely that they will offer some strong opinions about the subject particularly the cons.

All types of foreign investors have encountered at one time or other difficulties with the legal system, or rather the enforceability of law in Indonesia. But as the Karaha Bodas Company KBC has discovered in the past three years, getting an Indonesian company to accept an international ruling - even when it has been deemed fair by courts in five different jurisdictions -...

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