PT BAT sued for terminating contract<\/p>\n
JAKARTA (JP): A cigarette distributor has demanded that PT BAT
\nIndonesia pay it Rp 21 billion (US$9.2 million) in damages for
\nabruptly terminating their contract.<\/p>\n
The distributor, FA Indonesia Jaya, through its lawyer
\nSudirman Munir, is now seeking help at the Central Jakarta
\nDistrict Court to deal with its dispute against PT British
\nAmerican Tobacco Manufactures - Indonesia Ltd. (PT BAT
\nIndonesia).<\/p>\n
Lawyer Munir told the court yesterday that the plaintiff is
\nseeking Rp 21 billion in damages for the financial loss his
\nclient has suffered since August 1995.<\/p>\n
The amount was for the loss of profit and service fees the
\nplaintiff has suffered, workers' salaries and severance pay and
\nimmaterial losses, the lawyer said.<\/p>\n
FA Indonesia Jaya said it had licenses for the distribution of
\nseveral cigarette brands produced by PT BAT Indonesia, such as
\nArdath, Benson Hedges, Commodore, Escort, Kent, Lucky Strike and
\n555 since 1967 in Jakarta, Bogor, Tangerang, Bekasi, Karawang,
\nCikampek, Purwakarta, Serang and Merak.<\/p>\n
There were other distributors of PT BAT products at that time.<\/p>\n
On Jan. 1, 1995, Munir said, PT BAT Indonesia and FA Indonesia
\nJaya signed an agreement appointing FA Indonesia as the sole
\ndistributor of its products until December 1996.<\/p>\n
PT BAT Indonesia stopped supplying its products to FA
\nIndonesia Jaya in August 1995 without clear reasons. PT BAT
\nIndonesia chose another company, PT Wicaksana Overseas
\nInternational, as its sole distributor instead.<\/p>\n
Munir said that the producer then halted the distribution deal
\nwith his client on Oct. 23, 1995.<\/p>\n
FA Indonesia suffered more than Rp 21 billion in financial
\nlosses after the agreement was terminated, Munir added.<\/p>\n
Presiding judge I.G. Ketut Sukarta suggested yesterday that an
\nout-of-court settlement be reached by both parties.<\/p>\n
The trial was adjourned until Feb. 1 to hear PT BAT
\nIndonesia's defense.(29)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-bat-sued-for-terminating-contract-1447893297",
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"sponsor": "Okusi Associates",
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