Sudwikatmono appeals $10m ruling

JAKARTA (JP): Prominent businessman Sudwikatmono appealed to the Supreme Court last Friday over the Jakarta High Court's ruling that he pay US$10 million to his former business associate Bambang Sutrisno over a 1997 business dispute.

"The Jakarta High Court has disregarded a Sept. 20, 1997 memorandum of understanding, which nullified a Sept. 8, 1997 agreement between my client and his business partner Bambang Sutrisno," Lawyer Denny Kailimang told The Jakarta Post on Monday.

He said his client should not pay the money as Bambang had yet to hand over his shares to Sudwikatmono, who is a cousin of former president Soeharto.

Sudwikatmono and Bambang established a retail business under the Golden Truly group in the early 1980s, which later expanded into hotel and financial service businesses.

Relations between the two deteriorated in 1997 and on Sept. 8, they made an agreement that Sudwikatmono would give US$10 million to Bambang in payment for Bambang's 50 percent shares in the Golden Truly group.

Denny said Bambang then canceled the Sept. 8 agreement through a memorandum of understanding on Sept. 20, 1997.

"Bambang then filed a lawsuit at South Jakarta District Court after he claimed that Sudwikatmono did not pay the US$10 million," he said.

Denny said the South Jakarta District Court ruled in favor of Sudwikatmono, saying that the Sept. 20, 1997 ruling was valid. But the Jakarta High Court then overruled the lower court's decision, while declaring that the Sept. 8, 1999 agreement was valid, he said. (asa)