PLN labor union optimistic to win lawsuit against Paiton

State-owned electricity company PT PLN's labor union is optimistic to win the lawsuit against PT Paiton Energy Company and other parties responsible for the implementation of power purchase agreement (PPA) between the company and PLN, according to Neraca daily.

PLN labor union lawyer Fauzi Yusuf Hasibuan told reporters on Monday that the Central Jakarta District Court, which is examining the case, had once handled the lawsuit filed two years ago by PLN against Paiton.

The court then ruled in favor of PLN and decided to continue with the trial before PLN's president Kuntoro Mangkusubroto withdrew its lawsuit in 2000 at the request of President Abdurrahman Wahid.

"Therefore we are optimistic that the court this time will also issue the same verdict that our client lawsuit could be tried here. It would be strange if the court handed different decisions over same problem," Fauzi said after attending a court hearing on the case.

Fauzi also contended that the district court had the authority to examine the lawsuit. As such, it had to go ahead with hearing the case.

Aside from Paiton, the union also sued former PLN's president Kuntoro Mangkusubroto for withdrawing PLN's lawsuit and making interim agreements to solve PLN's dispute with Paiton.

Kuntoro's lawyers from Assegaf & Partners and Lubis Ganie Suroowidjoyo contended that the district court had no power to try the case as Kuntoro just implemented the government's policy. Therefore, the case should go to Jakarta Administrative Court, rather than the district court.

Paiton, which is partly owned by American energy giant Mission Energy, has built a giant coal fired power plant in the Probolinggo area of East Java. (*)