Abstract: The Indosat affair might be viewed as a case of a Third World host country that capriciously and opportunistically took over a financially attractive foreign-owned enterprise. But an examination of other foreign investment disputes in developing countries during the previous two decades indicates that Indonesians and others acted with more reason than caprice. The overall pattern suggests that there was probably little that ITT could have done to protect its investment once its hold on technology had slipped.

Keywords: International Telephone and Telegraph, ITT, Indonesia, foreign investment, foreign-owened enterprise,