Indonesia: Contracts In Flames?
Ronald P. Landry, CEO of Paiton Energy Co., waves a contract the size of a phone book in the air. It's the document Paiton executives signed to build a $2.5 billion power plant in Indonesia in 1994. Now, with President Suharto ousted, the government of B.J. Habibie may be looking for ways to impose new terms on expensive deals such as the Paiton plant. Don't try it, warns Landry, pointing to the page that requires all parties to submit to arbitration. "If the government reneges on this contract, they'll get absolute turmoil," he says. He even invokes the threat of phone calls from President Clinton and Prime Minister Ryutaro Hashimoto on behalf of the Paiton consortium, which includes General Electric Co. and Mitsui & Co.
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