PT Hutama Karya demands review of bankruptcy ruling<\/p>\n
JAKARTA (JP): State-owned construction firm PT Hutama Karya,
\nhas filed a judicial review against a bankruptcy ruling issued by
\nthe Supreme Court against the company.<\/p>\n
Minister of Public Works Rachmadi Bambang Sumadhijo, said on
\nTuesday it was in the interest of the ministry to retain Hutama
\nKarya because of its leading role in the domestic construction
\nsector and the thousands of employment opportunities provided by
\nthe company.<\/p>\n
\"Based on our assessment, the asset size of Hutama Karya is
\nmuch larger in value than claims made by the plaintiffs,\" he told
\nAntara following a debate session on the new bill on construction
\nservices at the House of Representatives.<\/p>\n
Hutama Karya, one of the country's major construction
\ncompanies, is under the supervision of the Ministry of Public
\nWorks.<\/p>\n
The Supreme Court declared Hutama Karya bankrupt -- the first
\nsuch verdict on a state-owned company -- on Feb. 23 because of
\nits inability to repay Rp 2.08 billion in construction fees to PT
\nJaya Readymix and Rp 283.3 million to PT Primacoat Lestari.<\/p>\n
Jaya Readymix and Primacoat Lestari filed a joint bankruptcy
\nclaim against the state-owned firm in December last year but the
\npetition was turned down in the commercial court.<\/p>\n
Judge Parwoto Wignjo Sumarto said the bankruptcy request was
\nrejected because Hutama Karya did not have any direct debt
\nobligation to the two private construction firms.<\/p>\n
The plaintiffs were not satisfied with the court ruling and
\nappealed to the Supreme Court.<\/p>\n
The Supreme Court's decision was not made public until the
\ndaily Kompas reported the finding on Tuesday.<\/p>\n
Rachmadi also urged Hutama Karya to renegotiate its debts with
\nthe creditors, in addition to appealing for a judicial review
\nagainst the bankruptcy verdict.<\/p>\n
Indonesia's new bankruptcy law was introduced last August to
\nprovide an exit facility for creditors wishing to settle their
\nunpaid loans through a commercial court.<\/p>\n
The launching of the new law and commercial court is part of
\nan agreement between the government and the International
\nMonetary Fund which is providing the country with a multibillion
\ndollar bailout.<\/p>\n
But the enforcement of the bankruptcy law as well as the
\nperformance of the commercial court is discouraging, analysts
\nsay, pointing out that several court decisions have been
\nquestionable.<\/p>\n
Separately, legislator Burhanuddin Napitupulu said the
\ngovernment should accept the bankruptcy verdict on Hutama Karya
\nbecause the company was saddled with massive debts, causing banks
\nto lose confidence in the company.<\/p>\n
\"In addition, Hutama Karya has no technological advantage and
\nmany of its assets are unproductive.\"<\/p>\n
He urged other state-owned companies under the Ministry of
\nPublic Works to merge into a solid company in order to avoid a
\nsimilar fate.<\/p>\n
\"Many of the state-owned companies are not efficient and their
\nmarket segment is declining.\" (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-hutama-karya-demands-review-of-bankruptcy-ruling-1447893297",
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