VIVAnews - The Ministry of State-Owned Enterprises presumes infrastructure projects in Middle East, which are being developed by several Indonesia construction companies, may inflict financial losses.
"All of them could suffer from losses, but we haven't calculated the exact numbers," Deputy Head of State-Owned Enterprises Ministry for Services and Other Business, Muchayat said at his office on Thursday, January 7.
According to him, the possible detriment may be caused by the different business regulations, characters and culture embraced by the Middle East countries.
Moreover, parties being involved in agreement contracts often terminate the contracts without acknowledgments from the other parties.
Muchayat also said since 2007, he has been opposing constructing state enterprises' act of going after overseas projects.
Meanwhile, regarding the business contract dispute between PT Adhi Karya Tbk and Qatar investor Al Habtoor, the ministry has proposed three settlement options which include business to business reconciliation, negotiation with the owner and arbitration courts.
"We would like to speak with the owner, not with the contractor, nit with Al-Habtoor," Muchayat said.
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Translated by: Nataya Ermanti
