RI govt and central bank sued for $58.59 billion

RI govt and central bank sued for $58.59 billion

NEW YORK (Reuters): The Republic of Indonesia, along with its
central bank, its export-import Bank Exim and other agencies and
banks, are targets of a US$58.59 billion breach of contract
lawsuit, filed Monday in U.S. Federal court in Manhattan.

The plaintiffs in the suit are a Channel Islands-based
investment group, Group of BA Ltd., and its principal, Gustaff
Daniel Parengkuan.

They charge that they entered an agreement with Indonesian
investment corporation PT Tiga Muriya Sejati, under which PT Tiga
would provide $100 million to an investment program to be
administered by the Group of BA.

It said Bank Expor Impor Indonesia (Bank Exim) agreed to act
as conduit for the $100 million, but that the funds were not
passed on to Group of BA as agreed and instead held by the
Indonesian government.

The defendant list includes Chase Manhattan Bank, which the
complaint says is holding a portion of the funds in its Bank
Indonesia's account.

Burchetta Brofman & Hanley, New York City attorneys for the
plaintiffs. Representatives of the Indonesian banks could not be
immediately reached for comment.

The complaint seeks compensatory damages of $8.59 billion and
punitive damages of $50 billion. The compensatory damage claim is
based on what plaintiffs said was a settlement agreement between
the Indonesian government and Group of BA that was not honored.