Roche vowing to stay put in Indonesia

PT Roche Indonesia has said that it will not leave the country even ifit loses its appeal in the Jakarta High Court over a fine of 281 billion ruppiahs ($32.5 million) imposed to compensate a local distributor. Company president Dieter Garbade told the Jakarta Post that Roche's chances of winning in the High Court are very good, and claimed that there was no illegal breach of contract with its distributor PT Perusahaan Dagang Tempo.

Roche came to Indonesia for a long-term business commitment, Mr Garbade added. Despite the fact that the same court last year ordered an injunction to sequester Roche's assets, including a factory and manufacturing equipment, the firm intends to stick to its 1996 plan of expanding its facility in west Java once local economic conditions improve and prices start to pick up.

The sequestration order will take effect if Roche's appeal at the High Court is rejected, the company's lawyer told the newspaper, and the fine is not executable until the final decision on the appeal is made.