Govt-Cemex agreement

The article Govt's court battle with Cemex looms in The Jakarta Post on Feb. 16 prompted me to offer some comments. I have followed this story ever since the government considered an amicable out-of-court settlement.

The government decided to reconsider its challenge against Cemex through arbitration proceedings. I do not know the exact contents of the sale and purchase agreement between the government and Cemex, but the news suggests that the agreement in question and the dispute arose because of a bias in favor of Cemex. Since the arbitration proceedings would take place under foreign jurisdiction, it would be unlikely for us to win the case.

Affirmatively, if the government has no further options for an amicable settlement with Cemex and proceeds to arbitration, an award would likely be forthcoming in favor of Cemex. But due to fierce opposition by some members of the House of Representatives, the government would be reluctant to pay the award, possibly over US$500 million, while Cemex would have no option but to attach whatever government assets were available abroad. That is the worst scenario I can imagine.

As a taxpayer, in order to avoid giving the country a bad image and suffering more losses, I would suggest the government continue its efforts to find a win-win solution, while also obtaining additional legal opinions from our prominent lawyers rather than just following the voices of legislators saying our position is legally strong.

RIDJANI NOER, Jakarta