PLN may lose office building

The state-owned electricity company PLN risks losing one of its office buildings in Jakarta worth Rp 73 billion (US$1=Rp 11,400) following a defeat in a court battle.

The Supreme Court recently confirmed the decision of the North Jakarta district court ruling PLN to pay some Rp 73 billion in compensation to PT Enrico, a contractor which had won a tender for ash disposal project at the coal-fired power plant in Suralaya, West Java.

But when Enrico was implementing the project, it involved in a dispute with PLN over the volume of the project, which ended in a court battle.

But PLN lawyer Yunan Lubis said that the court ruling was impossible. He said that how come PLN must pay a hefty Rp 73 billion compensation for a project worth only Rp 2.8 billion.

Yunan expected the new chief of the Supreme Court, Bagir Manan, to annul the earlier court decision. He said that PLN was a state company owned by the people.

He said that if the court decision was implemented, PLN may risk losing its prime building on the Gatot Subroto street in South Jakarta. The building is currently used as the headquarters of PLN?s subsidiary PT Indonesia Power.(R. Amoros)