Abstract: With slow growth in home electricity markets, cheap money, and a go-go atmosphere, foreign investors responded eagerly to the new call of emerging markets. Assurances of property rights added to investors' eagerness to undertake projects in risky places. On the other side, Indonesian officials were unprepared for the complexities of power negotiations and encountered pressure from the US government to sign deals that benefited US companies. Most importantly, the personal interests of some Indonesians overrode the good of the nation.

Keywords: Indonesia, foreign investment, electricity markets, property rights, electric power,