TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Indonesian dealers to sue Ford principal for Rp 1 trillion

Six Ford dealers, who own 31 Ford outlets across the country, have joined in a lawsuit against Ford group due to its unilateral decision to cease operations as of the second half of 2016.

Anton Hermansyah (The Jakarta Post)
Jakarta
Mon, June 27, 2016 Published on Jun. 27, 2016 Published on 2016-06-27T14:03:54+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Indonesian Ford Dealers spokesperson Andee Yoestong (right) gives a statement at a press conference in Jakarta on June 27 while his lawyer, Harry Ponto, listens. Indonesian Ford Dealers spokesperson Andee Yoestong (right) gives a statement at a press conference in Jakarta on June 27 while his lawyer, Harry Ponto, listens. (thejakartapost.com/Anton Hermansyah)

S

ix Ford dealers, who own 31 Ford outlets across the country, have come together in a lawsuit against Ford group due to its unilateral decision to cease operations as of the second half of 2016.

They are demanding Rp 1 trillion (US$73.7 million) in compensation as the decision ended their businesses. While their investments, at around Rp 20 billion to 30 billion per dealer, have gone sour, they must pay large amounts of compensation to around 2,000 laid-off employees.

"My clients represent 85 percent of total Ford sales in Indonesia. We sent a warning letter on June 1. However, Ford ignored it, thus the second warning letter was sent on June 13," said lawyer Harry Ponto during a press conference in Jakarta on Monday.

The warning letters were addressed to three parties: FMI, Ford Motor Company (US) and Ford International Services (US). The US-based business group has three days to respond to the second letter.

If the third letter is also ignored, the case is likely to proceed to court.

"Before the abrupt announcement on Jan. 25, operations ran normally. Even nine new sales points were opened. In December, Ford demanded that we give them an update on our outlets under construction," said Indonesian Ford Dealer spokesperson Andee Yoestong. (ags)

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.