The Remaining Unpaid Profit Sharing is Still Considered a Default

This Judicial Review (PK) Decision was filed by Abd. Rahim Wellang (the petitioner), the recipient of the work result (fee) against PT Citra Silika Mallawa (CSM/respondent), a nickel ore mining company. Both are bound by a work agreement (fee) dated 1 March 2012. The contents of the agreement between the plaintiff (Rahim) and the defendant (CSM) agreed to provide the work in full and cash to the plaintiff in the amount of USD 0.75 per Metric Ton for each shipment and or export of nickel ore that the defendants have carried out. Based on Article 1320, in conjunction with 1338 in conjunction with 1233 of the Civil Code, the two parties have bound themselves to each other in an agreement that was born based on an agreement. Thus, the work agreement (fee) is considered valid as a binding law for both parties.

However, the defendants have not paid the remaining bills from the total nickel ore sales of USD 1,450,965.3, resulting in the plaintiff’s loss. Therefore, the actions of the defendant (still) can be declared a breach of contract (default) in accordance with Article 1238 of the Civil Code. The Supreme Court granted the plaintiff’s claim in part and declared the work agreement (fee) valid according to law and stated that the defendants owed the plaintiffs an amount of USD 1,450,965.3 and ordered the defendants to pay according to the rupiah exchange rate.

→ Supreme Court Decision No. 534 PK/Pdt/2018 dated 10 August 2018

Source:

Hukumonline.com, dated 4 March 2019.

Best regards,

Fredrik J. Pinakunary