This paper examines the effects of technology transfer and spillovers from foreign multinational affiliates on local establishments in Indonesia. Using unpublished micro data, the authors address two main questions: whether establishments with minority and majority foreign ownership differ in terms of productivity levels, and whether the degree of spillover varies with the degree of foreign ownership. The results indicate that foreign establishments have comparable high levels of labor productivity, and domestic establishments benefit from spillovers. However, the degree of foreign ownership does not affect the level of labor productivity in foreign establishments or the degree of spillovers. The study suggests that local participation with multinationals does not facilitate technology diffusion in the host economy, and that spillovers are more influenced by increased competition following foreign direct investment (FDI) rather than ownership sharing.This paper examines the effects of technology transfer and spillovers from foreign multinational affiliates on local establishments in Indonesia. Using unpublished micro data, the authors address two main questions: whether establishments with minority and majority foreign ownership differ in terms of productivity levels, and whether the degree of spillover varies with the degree of foreign ownership. The results indicate that foreign establishments have comparable high levels of labor productivity, and domestic establishments benefit from spillovers. However, the degree of foreign ownership does not affect the level of labor productivity in foreign establishments or the degree of spillovers. The study suggests that local participation with multinationals does not facilitate technology diffusion in the host economy, and that spillovers are more influenced by increased competition following foreign direct investment (FDI) rather than ownership sharing.