Wed, 31 Dec 1997

Businessman to sue minister

JAKARTA (JP): Businessman Sjarief Tando insisted yesterday he would sue Minister of Mines and Energy I.B. Sudjana and his staff over the cancellation of a contract for the development of an office.

Tando's lawyer, Greta Noordiana, said her client, the president of PT Petrobuild Indonesia, had decided to continue his lawsuit against the minister despite an amicable settlement offered by the Central Jakarta District Court.

"Our client tried to discuss the matter with the minister and other parties but we never received satisfactory answers," Greta said.

She said the trial had been adjourned until Jan. 13 to hear statements from lawyers representing the minister and his staff.

Greta said all the defendants had caused Petrobuild to lose its US$100 million contract to build and operate the Migas Center on a 127,708-square-meter plot on Jl. Thamrin.

The center would have consisted of several high-rise towers to be occupied by mine and oil companies and the ministry's Directorate General of Oil and Gas, she said.

Under the contract, which was signed by Tando and the then director general of oil and gas Suyitno Patmosukismo in 1993, Petrobuild was given the right to operate the center for 30 years before transferring it to the ministry, she said.

But the ministry, she said, revoked the contract in 1995 and transferred it to PT Bhakti Patra Nusantara, which is affiliated to Pertamina. (jun)