Indonesian court finds in BH Global's favour in vessel dispute

The dispute between PT BH Marine & Offshore Engineering and PT Andalan, involved three vessels at the shipyard – two newbuildings and one under repair. PT Andalan claimed BH Marine & Offshore breached its contract by failing to deliver the vessels while the shipyard said the customer had failed to make payment and was owed SGD1.96m ($1.5m).

A mob of 50 to 100 men forcibly removed two of the vessels from the yard last July, although they were later recovered by the Indonesian navy.

“The District Court of Batam held in favour of the subsidiary and found that PT Andalan had not fulfilled its obligation to make payment for the construction and repair of the vessels. The subsidiary’s retention of the vessels was therefore legitimate,” BH Global said in a statement to the Singapore Exchange.

“PT Andalan’s claim and prayer for relief was accordingly rejected in its entirety and PT Andalan was ordered to pay costs in relation to the proceedings.”

PT Andalan has filed an appeal.