Bumi Gas wins Supreme Court appeal in geothermal dispute
Friday, May 31 2013 - 04:06 AM WIB
The Supreme Court?s verdict annulled the Indonesian National Arbitration Board (BANI) decision in July 11, 2008, which ruled that the agreement on the construction of the two geothermal power plants had ended on July 17, 2008.
The legal fight, which has taken place for years, began when Geo Dipa, which is owned by Pertamina and PLN, named Bumi Gas as the winner of the tender for the construction of the 2 x 60 MW geothermal power plant in Dieng, Central Java and the 3 x 60 MW geothermal power plant in Patuha, West Java.
The two projects were formerly owned by Himpurna California Energi Ltd (HCE) and Patuha Power Ltd. But they were later taken over by the Indonesian government.
The construction of the two power plants, however, did not run as expected, Geo Dipa claimed.
It accused Bumi Gas of breaching the contract agreements and went to the arbitration agency to cancel the contract with Bumi Gas. The arbitration body accepted the petition, but Bumi Gas appealed to the Supreme Court to cancel the arbitration decision, after the South Jakarta district court rejected its earlier petition.
Bumi Gas legal advisor Bambang Simamora welcomes the Supreme Court?s verdict. ?We expect Geo Dipa to abide by the ruling,? he said on Thursday, adding that the verdict means that Bumi Gas can still execute the contract on the construction of the two projects.
Meanwhile, Geo Dipa legal advisor Imam Haryanto said he has yet to receive the copy of the verdict, but said that he would continue to fight and file for a Request for a Case Review (PK). Geo Dipa also plans to report the panel of judges -- I Made Tara, Soltoni Mohdally and Nurul Elmiyah ? to the Yudicial Commission.
Imam insisted that BANI?s decision could not be annuled and still binds all parties.
The verdict has no impact on the PLTP Patuha Unit I project (1x55 MW) currently being undertaken by Marubeni Corporation together with PT Mattamat Cakera Canggih. (*)