Mivan leaves partnership with Summarecon

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)