Indofood, former executives sued for unfair transactions

Indofood, former executives sued for unfair transactions

JAKARTA (JP): The former owner of a company that later grew to
become PT Indofood Sukses Makmur is to sue the largest noodle
producer and its former executives for over Rp 620 billion for
unfair business transactions occurring in the mid-1980s.

Djajadi Djaja filed the lawsuit against Indofood and its
former executives Anthony Salim, Ibrahim Risjad, Djuhar Sutanto
and Sudwikatmono, according to a petition presented at the South
Jakarta district court by Djajadi's representative, the Lubis,
Santosa and Maulana law firm.

Djajadi, the owner of the dissolved PT Sanmaru Food
Manufacture Company, alleged Indofood acquired the former
unfairly, using devious means to enforce the sales.

"The purchasing agreements with Sanmaru Food were defective,
so the acquisition was not legitimate," the law firm said.

It said Djajadi personally owned the patents to several brands
of food products including Indo Mie, chicken flavor Indo Mie,
beef flavor Indo Mie, Vitami and T logo, infant flour Indo, Miko
Indo Mie and Golden Kids - Anak Mas & Lukisan food products
before the acquisition.

He also personally owned the trademarks for Tiga Gelang &
Lukisan and Lukisan Anak Ayam & Lukisan food products before the
acquisition.

Sanmaru, a company Djajadi formed with three other
businessmen, produced the goods under these trademarks. But the
trademarks were never made into Sanmaru's assets, the law firm
has said.

In July 1984, Anthony, Ibrahim, Djuhar and Sudwikatmono each
bought a minority stake in Sanmaru.

A year later, they raised their stake in Sanmaru to 42 percent
in total by increasing the company's paid-up capital to Rp 1
billion (US$111,000) from merely Rp 50 million.

"The strategy of multiplying the number of shares to 8,000
from 400 shares and by raising the paid-up capital to Rp 1
billion from Rp 50 million, really benefited the accused because
as large investors, they could buy the largest portion so they
could run the company," the law firm said.

In 1986, the four accused, all of whom were backed by an
alliance with then president Soeharto, allegedly forced Djajadi
to sell his company and his brands to PT Indofood Interna
Corporation, in which they owned stakes as well, at the
abnormally low price of Rp 10,000.

The law firm alleged the four accused had deceitfully planned
a take-over of Sanmaru and carried out the plan by abusing their
alliance in order to take power.

"The initial purchase of a minority stake in Sanmaru was part
of their grand design to monopolize the noodle market in
Indonesia," he said.

He also said that the purchasing agreements were vague because
they only stated the purchase of "parts of the companies and the
brands" but did not clarify which of the brands and the parts of
the company's assets were included, the law firm said.

In addition the trademarks used by Sanmaru were not its assets
but belonged personally to Djajadi, the law firm said. (das)