Bukaka to sue government for suspending its contract

Bukaka Teknik Utama will sue the government for arbitrarily suspending the contract awarded to the company to build a US$75 million power transmission facility from Klaten, Central Java and Tasikmalaya, West Java, Bisnis Indonesia reported on Thursday.

The suit will, however, be filed against Coordinating Ministry for Finance and Trade Kwik Kian Gie instead of against President Abdurrahman as the company said earlier.

Bukaka's chief executive officer Achmad Kalla said in Jakarta on Wednesday that his company filed the legal suit against Kwik because he, as the coordinating minister, was directly responsible for the suspension of the contract.

The government cancelled the contract awarded to PT Bukaka Teknik Utama to develop the US$75 million power transmission network between Klaten in Central Java and Tasikmalaya, West Java, due to alleged KKN practices in the obtaining the contract.

Former minister of trade and industry Jusuf Kalla, the owner of the company denied the KKN allegations charged by the President, who is more popularly called by his nickname Gus Dur.

Kalla, the older brother of Achmad, instead, accused the government's move to annul his company's contract was made to pave the way for Gus Dur's crony to take over the project.

Gus Dur has issued conflicting statements about the reason behind the suspension of the contract. First he said that it was suspended due to KKN practices and later said that the suspension was made because Bukaka "is financially unfit". Meanwhile the ministry of mines and energy said that the contract was cancelled because the company breached the procedures when bidding for the project.

Kalla, who was dismissed by Gus Dur due to the KKN allegations, denied all the accusation, saying the charges were made only to justify the suspension decision. (*)