Suryamas sues private bank over $50m deal

JAKARTA (JP): Publicly listed developer PT Suryamas Dutamakmur is suing Bank Niaga over a transaction worth US$50 million.

In the first session at the South Jakarta District Court yesterday, the developer's lawyer Hotman Paris Hutapea asked the court to order the publicly listed bank to pay a total of $61 million to his client.

According to Hotman, the amount consists of the sum stated in their agreement, $50 million, which his client claims never to have received, plus $10 million in financial losses and $1 million in immaterial losses.

He also demanded the bank pay 6 percent interest on the total amount dated back to when the lawsuit was filed on July 23, 1998.

The incident, Hotman said, started last year when his client asked Bank Niaga for a credit facility to develop Rancamaya housing complex in Bogor and Bumi Manggala housing complex in Cibubur, East Jakarta.

On July 17, 1997 the bank agreed to lend $50 million to his client through its derivative transaction scheme with a rate of Rp 2,596.67 per dollar, he said.

At that time, the central bank's buying rate was Rp 2,425 and it selling rate Rp 2,473.

However, Hotman said, his client never received the money.

The bank, instead, asked the developer to repay the loan at a rate of Rp 14,200 to the dollar when the loan matured on July 20 this year, the lawyer said.

Hotman also claimed that the bank never explained the risks of the facility to his client.

"The bank, which has many financial experts, seemed to have predicted that rupiah would plunge. The bank offered the facility with an attractive conversion rate to my client," he said.

Hotman said his client had received no money from the bank and therefore the agreement between Suryamas and Bank Niaga was invalid as stated under Article 1475 of the Civil Code.

Presiding judge J.M.T. Simatupang offered a peaceful settlement to the two disputing parties but Hotman said his client would only accept the offer if Bank Niaga met their demands.

In response to the lawsuit, the bank's corporate affairs head Jonki Kresnadi rejected the developer's legal reasons, saying his party would countersue.

"Bank Niaga has strong evidence that it is Suryamas that should pay (the money) to Bank Niaga," Jonki said in a statement made available to The Jakarta Post last night.

Judge Simatupang adjourned the trial until next week to hear the defendant's statement. (jun)