PT Arkindo Sues Mayor of Makassar, Demands Rp 7 Billion in Compensation for Unilateral Contract Termination

PT Arkindo Team (Doc.ist)

Printable.biz.id – PT Arkindo has officially sued the Mayor of Makassar and several related parties over the unilateral termination of the Karebosi Sports Area Revitalization Project contract.

In this lawsuit, PT Arkindo is demanding compensation for the losses they suffered and requesting that the performance bond claim filed by PT Asuransi Umum Bumiputera Muda 1967 (Bumida) be postponed.

Thedy Setiawan, Branch Director of PT Arkindo Makassar, stated that the contract termination was carried out unilaterally and without mediation. According to him, this action contradicts the prevailing regulations.

"We have carried out the work according to the contract, but the project faced obstacles due to planning errors that were not our fault. We requested an extension, but it was rejected without clear justification. Then, suddenly, the contract was terminated unilaterally, and now we are even being asked to pay the performance bond claim. This is an unfair action and has severely harmed us as the project executor," said Thedy.

He further added that the project delay was not PT Arkindo's fault but was caused by external factors, such as the lack of tree-cutting permits, which were the government's responsibility.

PT Arkindo’s legal counsel, Muhammad Sirul Haq, SH, C.NSP, C.CL, argued that the contract termination was unjust and violated procurement regulations.

"We see an element of unlawful conduct in this decision. Terminating the contract without a strong legal basis and without mediation shows that our client’s rights have been violated. Additionally, PT Asuransi Bumida continues to demand the payment of the performance bond worth Rp 3.1 billion, even though the project is still under dispute. This claim should be postponed until a legally binding court decision is made," emphasized Muhammad Sirul Haq.

Another legal representative, Mulyarmand D. SH, also asserted that the Makassar City Government’s actions were unlawful and detrimental to PT Arkindo.

"We consider this action an unlawful act because it was carried out without mediation and without considering external factors that hindered the project. We demand that PT Arkindo's rights be restored, including payment for the work already completed and the suspension of the performance bond disbursement by Bumida," explained Mulyarmand.

In the lawsuit filed with the Makassar District Court, PT Arkindo stated that the project delay was due to planning errors by COT UNHAS as the project planning consultant and PT Yodya Karya (Persero) as the project supervisor.

Additionally, the incomplete tree-cutting permit also contributed to the delay. PT Arkindo is requesting the court to:

1. Declare that the contract termination by the Makassar City Government is unlawful.

2. Order the defendants to pay Rp 7 billion in compensation.

3. Halt the transfer of project funds still held in the Makassar City Government's account until a legally binding decision is made.

This case is currently being processed in the Makassar District Court. PT Arkindo hopes to obtain justice and restore their rights as the project executor.