Paiton and PLN

Thank you for your story headlined "Paiton Energy dismayed by court's decision" of Dec. 4.

There was a mistake and misperception in the story that needs to be corrected.

Regarding the lawsuit of the State Electricity Company (PLN) against Paiton Energy, you stated that the "court made the provisional ruling at the request of PLN, which had sued Paiton at the court following the latter's refusal to renegotiate with the state company on its power purchase contract."

That is incorrect. Paiton Energy and PLN were in the midst of renegotiations which progressed significantly toward a settlement when PLN surprised us by abruptly breaking off discussions and filing suit at the Jakarta Central District Court.

Paiton has always been willing to renegotiate its contract with PLN. In spite of PLN's legal efforts, we reaffirm our preference to resolve our issues through negotiation rather than litigation or arbitration, all as part of our ongoing commitment to help the government and people of Indonesia through the current economic difficulties.

To this end, we have time and again provided concessions to PLN, which they have unfortunately rejected.

RONALD LANDRY

President Director

PT Paiton Energy

Jakarta