PALMOILMAGAZINE, JAKARTA – The East Jakarta Court has officially ruled in favor of PT Mas Lestari Perkasa (MLP) in its default case against PT Astra Agro Lestari Tbk (AALI) and its two subsidiaries, both of which were supplied with crude palm oil (CPO) and palm cooking oil by MLP. In a hearing on Tuesday, October 15, 2024, the Court ordered AALI and its subsidiaries to pay MLP approximately IDR 56 billion in compensation.
This decision is documented in East Jakarta Court Case No. 190/PDTG/2024/PNJKT.TIM, where it was concluded that AALI and its affiliates were in default on their contractual agreement for CPO procurement with MLP.
MLP expressed its approval of the ruling. “We hope this outcome swiftly resolves our losses. We also hope that all palm oil industry stakeholders will uphold the agreements they sign, ensuring that no party suffers due to unilateral cancellations or modifications,” said MLP’s attorney, Anthon Djono, as quoted by Palmoilmagazine.com from Sindonews on Thursday, October 24, 2024.
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The cooperation between MLP and AALI had been running since 2019 but it got worse in the midst of 2021 when AALI cancelled the contract to procure 11.000 tons of CPO in one side. This happened for CPO significantly got cheaper and AALI thought the price that was agreed in the first place was too expensive. As the result, AALI stopped paying down payment that both parties agreed with.
Sunarto, Director of MLP said the company did the best to get the solution on the problem with AALI but there was no good response. After conducting persuasive try and had no good result, MLP eventually claimed AALI to East Jakarta Court.
“We have been in cooperation with AALI since 2019 and every party fulfilled the obligation as written in the contract. But in 2021, AALI cancelled the contract in one side and did not claim the other contracts,” Sunarto said.
In the advocacy, AALI claimed that the agreement to procure 11.000 tons CPO did not reach the official contract and only the discussion through whatapp. That is why AALI denied to acknowledge the claim and mentioned that AALI did not make the repricing but by its affiliations.
But the Court sentenced that AALI and its two subsidiaries should pay the compensation for MLP with the total about IDR 56,26 billion. (P2)
