Riau court may confiscate Caltex's main office in Rumbai

The dispute between oil giant PT Caltex Pasific Indonesia and its local supplier PT Buckwar John Baspuri might end up with the confiscation of the oil company's main office in Rumbai as its bank accounts are not enough to cover the compensation demanded by the local court, Riau Pos reported on Tuesday.

"The Pekanbaru district court has prepared the confiscation order. The execution to confiscate the company's main office in Rumbai will be carried out some time this week," the spokesman for the court, Sapin Rizaldi was quoted by the daily as saying.

He said that the confiscation of the oil giant's main office in Rumbai would be carried out because the company's bank accounts, which were seized by the court recently, were not enough to cover the Rp 8 billion (US$=Rp8500) compensation.

The Pekanbaru district court only found Rp 11 million and US$1,300 in Caltex's accounts at the local office of the state owned Bank Mandiri when it executed the confiscation of the company's bank accounts recently.

PT Buckwar took Caltex to the court after the oil company unilaterally cut the payment for the cars leased to the oil giant, and it finally won the case. Caltex rejected the court's decision and appealed to the Supreme Court but the appeal was turned down. (*)