Abstract: Indonesians and others began to criticize the terms of the Paiton I deal. Although one can quibble with critics' calculations, all approaches raised serious questions about whether the deal was good for Indonesia. The costs were high, even though major risks were assigned to the host country. The way risks were accounted for, for this and the other tewnty-six Indonesian power agreements, ensured that the Asian Currency Crisis would bring them all down. Collapse would come even before projects had been finished.

Keywords: foreign investment, Indonesia, power projects, cost, risk, power agreements,