PLN union files suit against PT Paiton<\/p>\n
JAKARTA (JP): The trade union representing workers of state
\nelectricity company PLN filed a civil lawsuit on Tuesday against
\nits management and privately run power plant operator PT Paiton
\nEnergy over an allegedly flawed power purchase agreement.<\/p>\n
The union's chairman, Hasrin Hutabarat, said the 1994
\nagreement violated the law and inflicted some US$590 million in
\nlosses to PLN due to the price margin between power offered by PT
\nPaiton and the consumer price.<\/p>\n
According to the agreement dated Feb. 12, 1994, PLN had to buy
\npower from the Paiton I hydrothermal electricity plant in East
\nJava for U.S. 8 cents\/kWh, double the price offered by other
\nprivate plants in Central Java.<\/p>\n
Under the same agreement it was decided that Paiton would be
\ntransferred to PLN ownership after a set period of time.<\/p>\n
However, following the economic collapse, the dollar-dominated
\ncontract became too financially burdensome.<\/p>\n
In 1997 the dollar was worth Rp 2,400 but the economic crisis
\nsaw the rupiah depreciate drastically. Today, the dollar is worth
\napproximately Rp 10,000.<\/p>\n
Claiming to represent all the company's workers, Hutabarat
\nsaid the agreement had sparked \"an antagonistic atmosphere\" in
\nthe state company and had forced the public to pay high power
\ncosts.<\/p>\n
\"We filed a lawsuit with the Central Jakarta District Court
\ntoday, urging the judges to annul the agreement because it may
\ncause greater losses to PLN and force consumers to pay higher
\nprices,\" he announced at a media briefing.<\/p>\n
Hutabarat insisted that there were indications of power abuse
\ncommitted by the Ministry of Mines and Energy and former PLN
\npresident Kuntoro Mangkusubroto, who served for less than a year
\nas minister of mines and energy, until 1999.<\/p>\n
\"We also demand they be held responsible for the agreement and
\nthe extension of the contract instead of its termination in 2001,
\nregardless of the fact that it was illegal,\" he added.<\/p>\n
Lawyer Fauzie Yusuf Hasibuan, who led the nine-member defense
\nteam for the workers, said the 1994 agreement was a breach of the
\n1945 Constitution and Law No. 15\/1985 on electricity which
\nstipulates that a contract should not financially burden the
\npublic.<\/p>\n
\"Moreover, our law regulates that prices should be in rupiah.
\nIn the agreement, PLN's earnings are limited and the contract can
\nonly be annulled by PT Paiton,\" he told reporters.<\/p>\n
Fauzie further explained that in 1999, Kuntoro's predecessor
\nAdhi Satriya had filed a civil lawsuit against PT Paiton with the
\nCentral Jakarta District Court over irregularities in the
\ncontract.<\/p>\n
Kuntoro then withdrew the lawsuit on Jan. 18, 2000 and offered
\nan interim agreement with PT Paiton on Feb. 21, 2000 which
\napproved the extension of the 1994 agreement after failure to
\namend its content, he said.<\/p>\n
\"Kuntoro had no right to withdraw the lawsuit. Instead of
\nfixing the agreement, he approved the new price offered by PT
\nPaiton. As a result, PLN is now obliged to pay a further $123
\nmillion in June 2001 in addition to its $590 million debt,\"
\nFauzie said.<\/p>\n
\"Although this is a civil case, hopefully the judges will also
\nbe able to reveal the corruption indicated in the case,\" he
\nadded. (bby)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-union-files-suit-against-pt-paiton-1447893297",
"image": ""
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