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I- Summary In 1975, Dow Chemical started to seek for a participation in a petrochemical facility in Indonesia. The initial propose was based on a joint venture with Pertamina, the state oil company. However, by 1976, as Pertamina fell into financial difficulties, the government assumed its debts and took the control of its operations. Under the new administration, Dow was offered a possibility of a “Contract of Work” rather than the joint venture initially proposed. Dow’s original plan was modified to adjust to the government’s requirements and a new proposal was presented. According to the company, in order to ensure the success of the project, Dow and the government would have to support the project with their respective resources. The government would sell ethane and fuel gas to the project “at prices such that the venture could be economically competitive”, and provide local know-how and protection from import-competition. In turn, Dow would be responsible for the petrochemical technology, training, market development expertise, key expatriate staff, and financial resources. Dow also emphasized some trading and economic factors that would constitute opportunities for the project. First, Indonesia represented