Indonesian e-commerce platform Bukalapak, was charged with IDR107.4 billion fine by the South Jakarta District Court (PN Jaksel) in a case filed by PT Harmas Jalesveva.
The dispute arose from a failed partnership to develop a property project in South Jakarta. Bukalapak and Harmas had signed an agreement in 2018 to jointly develop a property project at the TB Simatupang area. The project was supposed to be completed by 2022 and Bukalapak was set to occupy around 75 percent of the space for its new headquarters.
However, the project faced difficulties and eventually came to a halt. Bukalapak claimed Harmas had failed to fulfil their obligation to provide workspace, causing Bukalapak to lose out on rental income and suffer other damages.
Harmas, on the other hand, claimed Bukalapak had breached the agreement by failing to make payments and requested the return of the deposit paid by Bukalapak.
The dispute led to legal action, with Harmas filing a lawsuit against Bukalapak in April 2021, seeking compensation for damages. Later, the court partially granted Harmas’ claim for material losses and ordered Bukalapak to pay compensation.
The court’s decision declared Bukalapak as liable to pay fine to Harmas to cover the total material losses incurred during the architecture finishing work, granite installation, procurement of granite tables, electronic work, electric generator installation, WPCU procurement, CAR insurance brokerage, structural, architectural, mechanical, and electrical works, as well as for the loss of potential office rent income for five years.
Bukalapak is planning to file cassation against the Jakarta High Court’s decision to the Supreme Court. The company has also said that Harmas had received the deposit payment, but had not returned it despite the failure of the project.
“We were unable to continue our cooperation plan due to Harmas’ failure to fulfil their obligation to provide workspace. Therefore, we did not contribute to the loss of rent revenue or any other losses incurred by the plaintiff,” Bukalapak’s AVP of Media and Communication, Fairuza Ahmad Iqbal said.
The company also said the case will not have a significant impact on its operations and that it will continue to focus on expanding its business.
