Local contractor demands PLN pay compensation
Local contractor demands PLN pay compensation
JAKARTA (JP): Local service company PT Enico National
Development is persisting with its demand for compensation from
cash-strapped state electricity company PT PLN for losses caused
by the latter's breach of a disposal contract almost a decade
ago.
Enico assistant president Agus Purnama said on Saturday that
the Supreme Court issued a ruling in the middle of last year
ordering the North Jakarta court to confiscate PLN's bank
accounts amounting to Rp 2 billion (about $250,000) and provide
the funds to Enico as compensation for its losses caused by PLN's
violation of their contract.
The North Jakarta court did not execute the ruling due to
opposition by PLN and Minister of Mines and Energy Kuntoro
Mangkusubroto.
He said the Supreme Court later reviewed its decision after
Kuntoro made his complaint.
Agus said Enico received a contract from PLN for coal disposal
at the coal-fired power plant in Suralaya in 1989.
According to Agus, PLN refused to pay the service fee to Enico
and annulled the contract in 1990 on the grounds that Enico
performed poorly.
Enico, insisting that it performed its job well and in
accordance with the contract, filed suit against PLN in 1993 at
the North Jakarta District Court.
The company won the case. PLN, which lost its appeal in the
higher court, filed another appeal with the Supreme Court, which
later also ruled in favor of Enico for Rp 1 billion.
Enico asked the Supreme Court to review its decision because
it considered the compensation was too low. At the time, the
Supreme Court agreed to review the compensation award and
ultimately ruled to increase it to Rp 2 billion.
Agus said Kuntoro later called on the Supreme Court to review
the decision, saying PLN never awarded any contract to Enico.
The West Java Thermal Power Plant Project -- which is
currently known as a division of PLN -- awarded the coal waste-
disposal contract to Enico in 1989, Kuntoro stated in a letter to
the Supreme Court dated March 23.
Agus said the Supreme Court subsequently ordered the North
Jakarta court to delay confiscating PLN's funds.
Enico has sent dozens of letters to the Supreme Court
protesting the delay in executing its decision, but there has
been no response. (jsk)