Roche rules out withdrawal from RI despite legal fiasco<\/p>\n
JAKARTA (JP): Multinational pharmaceutical company PT Roche
\nIndonesia dismissed on Wednesday any possibility of pulling out
\nof Indonesia even if it loses an appeal of a controversial Rp 281
\nbillion (about US$33 million) fine at the Jakarta High Court.<\/p>\n
\"Even if our appeal is rejected, Roche will not leave
\nIndonesia,\" Roche president Dieter Garbade announced on
\nWednesday.<\/p>\n
He stressed that Roche would continue to strive in its legal
\nbattles against its distributor, adding that a prospect for
\nfinally winning the case was still high.<\/p>\n
The South Jakarta District Court issued a verdict in late May
\nthat Roche was liable for Rp 281 billion in compensation to its
\ndistributor, PT Perusahaan Dagang Tempo, due to a breach of
\ncontract.<\/p>\n
The verdict, however, is not executable in advance, and Roche
\ndoes not have to comply with the ruling until the final level of
\nappeal, which is at the Supreme Court, has gone through.<\/p>\n
Roche defended and filed an appeal at the Jakarta High Court,
\nclaiming there was never an illegal breach of contract as the
\ndistribution agreement clearly stipulates that termination is
\nallowable.<\/p>\n
Garbade said the May ruling by the South Jakarta Court was the
\nsecond blow to his company after the same court last year ordered
\nan injunction (a preliminary verdict) to sequester Roche's
\nassets, which include: its land and factory in Cimanggis, Bogor;
\nits machines and all manufacturing equipment on the land and in
\nthe factory; as well as spare parts and half-finished goods
\nthere.<\/p>\n
\"We are disappointed about what has happened. However, we will
\nstay,\" he said, adding that Roche came to Indonesia for a long-
\nterm business commitment.<\/p>\n
Garbade said Roche was still holding to its original plan it
\nmade in 1996 to expand its factory in Cimanggis, West Java,
\ndespite the legal trouble the company was currently experiencing.<\/p>\n
\"We will expand our factory as soon as the economic condition
\nhere gets better and prices start to pick up again,\" he said,
\nadding that the company still had much idle area on the nine-
\nhectare land, which the South Jakarta Court had put a
\nsequestration order on.<\/p>\n
The sequestration order will take effect, or be executed, if
\nRoche's appeal at the Jakarta High Court is rejected, said
\nRoche's lawyer Timbul Thomas Lubis from Lubis, Ganie and
\nSurowidjojo law firm.(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/roche-rules-out-withdrawal-from-ri-despite-legal-fiasco-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}