Timeline of Karaha Bodas case
Timeline of Karaha Bodas case
Before the project
Oct. 2, 1990: PT Manggala Pratama owned by Tantyo Sudharmono expresses its interest in participating in the geothermal business.
June 16, 1993: Pertamina asks PT Manggala about the follow-up to its proposal. PT Manggala responds that it has transferred all responsibility on geothermal interests to PT Sumarah Dayasakti.
Sept. 30, 1993: PT Sumarah presents Pertamina with an improved proposal with a copy of a memorandum of understanding (MOU) between PT Sumarah and SCOTIA Geothermal.
March 23,1994: PT Sumarah informs Pertamina that it will partner with Magma Power Company to develop Karaha.
Oct. 13 1994: PT Sumarah signs an MOU with Caithness Resources, which replaces Magma Power, and forms Java Geothermal Company.
Oct. 17 1994: PT Sumarah informs Pertamina that it has changed its foreign partner from Magma Power to Caithness.
Nov. 9 1994: PT Sumarah, Java Geothermal and Duval Corp. sign a joint venture agreement and establish PT Karaha Bodas Company (KBC).
Later, Caithness Energy sells some of its KBC shares to Florida Power & Light, thus KBC's shareholders are Caithness Energy (40.5%), Florida Power & Light (40.5%), Tomen Corp of Japan (9%) and PT Sumarah (10%).
Dec. 2 1994: KBC signs a joint operation contract (JOC) with Pertamina, and an energy sales contract (ESC) with Pertamina and PLN.
During the project
May 1995: KBC starts operation in Indonesia, opening offices, conducting an environmental impact study, building access roads to the location, and conducting surface exploration.
Nov. 2, 1995 to Aug, 28, 1997: KBC drills 15 core hole wells in Karaha and four in Lake Bodas areas, and six standard wells in Karaha. Of the six wells, only two are considered commercial.
Sept. 20, 1997: Following a recommendation from the International Monetary Fund (IMF), the Indonesian government issues Presidential Decree (Keppres) No. 39 that postpones the construction of a number of infrastructure projects, including Karaha Bodas.
Oct. 14 1997: Pertamina holds a meeting with KBC and other energy investors to get their input following the issuance of Keppres 39. Following the meeting, Pertamina and PLN recommends that the government allow geothermal projects to resume operation.
Nov. 1, 1997: The government issues Keppres No. 47, allowing a number of postponed infrastructure projects, including Karaha Bodas, to resume construction.
Jan. 10, 1998: Following pressures from the IMF, the government issues Keppres No. 5 that revokes Keppres No. 47.
Jan. 13 1998: KBC asks Pertamina to demand that the government allow KBC to continue with the geothermal power plant project.
Jan, 23, 1998: KBC reports to Pertamina concerning the consequences of the Keppres.
Feb. 10, 1998: KBC declares force majeure as a result of a government related event (Keppres).
March 6, 1998: PLN asks all parties in the Karaha Bodas project, including Pertamina and KBC, to abide by the Keppres and stop the project.
April 30, 1998: KBC files a case with the Geneva-based UNCITRAL international arbitration court against Pertamina, PLN and the Indonesian government, for breach of contracts.
Legal battle
June 2, 1998: KBC through its lawyer informs Pertamina that it has asked UNCITRAL in Geneva to appoint an arbiter for Pertamina, PLN and the Indonesian government, due to lack of response from the latter.
Nov. 19, 1998: first hearing in Geneva
May 31, 1999, second hearing held in Paris, with a main agenda of hearing court decisions concerning procedural matters.
Dec. 18, 2000: final arbitration award, with the court declaring that Pertamina in breach of the joint operations contract and energy sales contract (ESC), and PLN in breach of the ESC. The court orders Pertamina and PLN together to pay KBC US$111.1 million for its expenditure loss, and $150 million for loss of future potential profit from the project, with 4 percent interest per annum starting 1 Jan 2001.
Following the arbitration award, KBC files cases in various courts around the world, including United States, Canada, Hong Kong and Singapore, asking them to confirm the arbitration ruling and confiscate Pertamina's assets in those countries.
Pertamina and PLN file a case with the Swiss Federal Supreme Court to annul the arbitration ruling, but to no avail because they fail to pay proceedings costs on time.
Dec. 4, 2001: Houston Court issues a summary judgment, confirming the arbitration ruling.
Jan. 4, 2002: Pertamina files an appeal with the Fifth Circuit Court in New Orleans against the Houston Court decision.
Feb. 22, 2002: KBC brings the execution of Pertamina's assets to banks in New York.
March 14, 2002: Pertamina files a case at the Central Jakarta District Court, asking the court to prevent KBC from executing its assets around the world
April 1, 2002: the Central Jakarta District Court issues a provisional ruling that asks KBC not to execute Pertamina's assets based on a decision from a U.S. court.
April 2, 2002: the Houston Court tells Pertamina to file a withdrawal of the Central Jakarta District Court's provisional ruling.
April 8, 2002: Pertamina asks the Central Jakarta District Court to annul the provisional ruling.
May 23, 2002: Hong Kong court confirms arbitration ruling.
May 29, 2002: Singapore court confirms arbitration ruling
Aug. 27, 2002: The Central Jakarta District Court annuls the international arbitration ruling.
September 2002, KBC files an appeal with the Indonesian Supreme Court
March 8, 2004: The Indonesian Supreme Court rules that the Central Jakarta District Court has no authority to fulfill Pertamina's demand to annul the arbitration ruling.
March 23, 2004: The Fifth Circuit Appeal Court rejects Pertamina's appeal against the Houston Court's ruling.
Oct. 6, 2004: New York Court asks banks to disburse $US29 million of Pertamina's frozen money at New York banks to KBC.
Oct. 22, 2004: New York Court orders Bank of America to disburse the remaining US$271 million frozen fund to KBC.
Nov. 22, 2004: the Indonesian government files an appeal to the U.S. Supreme Court, saying that the money (US$271) belongs to the Indonesian government, not Pertamina.
from various sources