Court insists on hearing Guthrie contract dispute<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The South Jakarta District Court has rejected claims made by
\nKumpulan Guthrie Berhad that the trial against the Malaysian
\ncompany over a disputed contract, cannot be held in Indonesia, a
\nCourt official has said.<\/p>\n
\"Via its provisional ruling, the court on Monday ruled
\nthat the trial case involving Guthrie and PT Adiyasa Saranamas is
\nwithin its jurisdiction.<\/p>\n
\"Therefore, it does have the authority to proceed with the
\ncase,\" Ricar Soroindah, a court official told The Jakarta Post on
\nWednesday.<\/p>\n
He added that the trial will continue on Oct. 12.<\/p>\n
Guthrie earlier argued since it was a Malaysian-based company,
\nany trial against it should be staged in a Malaysian court.<\/p>\n
Adhiyasa has filed a law suit against Guthrie for an alleged
\nbreach of contract.<\/p>\n
The former claimed that the later had used its financial and
\ninvestment service in acquiring 25 oil palm plantation companies
\nfrom the Indonesian government last year, via the Indonesian Bank
\nRestructuring Agency (IBRA).<\/p>\n
Trial documents, which were made available to the Post, showed
\nthat the two companies had reached an agreement, under which
\nGuthrie would have to pay an agreed amount of money as a
\nconsultancy fee to Adhiayasa.<\/p>\n
However, according to Adhiyasa, Guthrie has repeatedly refused
\nto fulfill its duty, which has forced the former to file a law
\nsuit against Guthrie at the South Jakarta District Court.<\/p>\n
It all started in November 2000 when Guthrie won a tender to
\nacquire the 25 plantation companies, which covers an area of no
\nless than 260,000 hectares in Sumatra, Kalimantan and Sulawesi.<\/p>\n
The tender deal cost the Malaysian palm oil giant US$350
\nmillion.<\/p>\n
The companies were formerly owned by the once powerful
\nconglomerate Salim Group, who had to surrender its various assets
\nto repay its huge debts to the government in the aftermath of the
\ndevastating financial crisis throughout the region.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/court-insists-on-hearing-guthrie-contract-dispute-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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