Total sued by local businessman for breaching contract

Businessman H, Sappe is filing a legal suit against PT Total Indonesia for unilaterally canceling the tender for the construction of its two-flour office building in Balikpapan, East Kalimantan. He demanded the subsidiary of the French oil giant to pay a compensation of Rp 11.1 billion (1US$=Rp 8,500) for the losses he suffered due to the suspension of the contract.

In its legal suit, Sappe said that the company's decision to annul the tender, which he already won, contradicted with the company's previous statements, which said that the company would suspend the construction of the office building for certain reasons.

He said that he agreed with the company's proposal to suspend the construction of the buildings, not on the cancellation of the tender contract as claimed by the company, which operates several oil and gas blocks in the province.

At a hearing in the local court on Wednesday, Sappe submitted a document containing the company's statement related to the agreements on the suspension of the construction of the office building.

But the hearing was adjourned because Sappe could not provide enough copies on the translated versions of his documents. (*)