The United States Supreme Court has turned down a bid by Indonesia's state oil firm Pertamina to recover $US300 million from US firm, Karaha Bodas.

Pertamina had originally paid Karaha the $300m for lost earnings after the collapse of a joint venture to develop a geothermal energy project in West Java.

Pertamina later changed its mind, claiming the compensation was excessive as the US company had overstated the potential of the geothermal reserve.

While the Court decision means that Pertamina has exhausted its appeal process in the United States, the oil firm says it'll continue to pursue the case in other jurisdictions.

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