PLN Unit Requests for Arbitration to Resolve Dispute

Law

Friday, 27 May 2011 13:08

Theindonesiatoday.com - PT Indonesia Power, a subsidiary of state-owned electricity company PT Perusahaan Listrik Negara (PLN), requested court to assign Indonesian National Board of Arbitration (BANI) adjudicating its dispute with PT Rahmat Group Bersama and PT Matahari.

Indonesia Power requested that in a defense statement submitted to the South JAKARTA District Court Thursday (May 26). Indonesia Power assesses the district court has no authority to examine the case, because based on the agreement between parties (Indonesia Power, Matahari Anugerah, and Rahmat Group) have to be resolved in BANI.

Luthfi Hani, Head of Indonesia Power Corporate Communications Division, explained that the company had never reduced Matahari Anugerah and Rahmat Group’s coal procurement quota for Suralaya Coal-fired power plant(PLTU) project from 500.000 metric ton to 320.000 metric ton. According to him, Matahari Anugerah dan Rahmat Group were only able to supply 320.000 metric ton, which has been approved by both parties through due diligence.

Luthfi also said that Matahari Anugerah and Rahmat Group have not deposited collateral money yet. Rahmat Group and Matahari were unable when asked to deposit 1%-3% from the project value for ‘bank guarantee’, arguably due to financial difficulties.

The case started when PT GroupRahmat Bersama and PT Matahari Anugerah Perkasafiled a lawsuit against PT Indonesia Powerand Bank Sumatra Utara. The defendant signed a work contract in August 2010 with Muhammad Nazaruddin, treasurer of Demokrat, to supply coal to Indonesia Power's Suralaya Coal-fired power plant.

Nazaruddin is mentioned as middleman of the deal between the plaintiff and Indonesia Power. Nazaruddin also contributed Rp24 billion of funds to secure the coal supply project. But later on defendant amended the winner of Suralaya coal supply, which triggered disputebetween the plaintiff and Nazaruddin. Nazaruddin then demanded the funds returned.

Daniel Sinambela, Nazaruddin's partner in the deal, is being prosecuted for fraud and money laundering based on Nazaruddin's report to the police. The plaintiff demands material loss compensation amounting to Rp121 billion and immaterial loss compensation of Rp2 trillion. The plaintiff also requests for seizure of defendant's assets and properties.(indra@theindonesiatoday.com)

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