Mivan leaves partnership with Summarecon

JAKARTA (JP): Publicly-listed property company PT Summarecon Agung said yesterday a foreign contractor, Mivan Ltd., had reneged on their business contract after the British company left the country in mid-May, leaving behind a long trail of debts.

In a statement, Summarecon said Mivan, which operated as the main contractor for Summarecon's apartment project in Kelapa Gading area here under the name PT Mivan Indonesia, ceased operations at the height of the social unrest in Jakarta in May.

"The departure of PT Mivan Indonesia has created problems both to PT Summarecon Agung as the project's owner... and to the subcontractors and suppliers of PT Mivan Indonesia which have not been paid," Summarecon said.

Since Mivan left the country, the apartment construction has halted.

Summarecon said Mivan personnel had not returned to the country since the riots because they "felt they did not have the security guarantee from the Indonesian government".

Summarecon said it had tried to contact Mivan Indonesia to ask about the continuity of their contracts and to demand the settlement of payment to Mivan's suppliers and subcontractors.

"To this day, there has not been a satisfying response from PT Mivan Indonesia," it said.

Summarecon said had also requested help from the commercial section of the British embassy in Indonesia, but officials said they could not intervene in a commercial dispute between two companies.

Many foreign embassies evacuated their nationals during the May riots, in which widespread looting and destruction blanketed the city.

Summarecon began the construction of the apartment complex -- lower priced than comparable buildings -- in Kelapa Gading Permai, North Jakarta, in June 1996. (das)