Permata sues PLN on geothermal dispute

PT Permata Drilling International filed a lawsuit against the State Electricity Company (PLN) after the two companies failed to amicably settle their dispute on the drilling of a well at a geothermal field in Tulehu Salahhutu village, Central Maluku, Bisnis Indonesia reported on Wednesday.

In its lawsuit at the Central Jakarta district court, Permata Drilling accused PLN of refusing to change the size of its drilling stabilizer to 8 1/8 inch from 81/2 inch as initially approved.

Permata Drilling?s lawyer Anton Au said PLN had acted against the law because the state electricity company refused to change the size of the drilling stabilizer in the geothermal drilling project.

Meanwhile, PLN?s lawyer Adiya Dewanta, said Permata Drilling breached the working agreement which had been signed by the two companies. As the result, the project had been delayed, causing financial loss to PLN which has been assigned by the government to develop the geothermal field. (*)