KJD Law Firm Advises CV Harsari AMT on its Business Contract

CV Harsari AMT, an energy services company based in Dstrict of Magetan, whose business on providing energy services among others optimizing energy efficiency for street lightning, has concluded many cooperation contracts with some local governments in Central Java, East Java, and South Sulawesi. CV Harsari AMT also holds many kinds of intellectual property rights for its innovation related to electric energy efficiency system. In 2014, CV Harsari AMT awarded Penghargaan Energi Prakarsa by the Ministry of Energy and Mineral Resources for energy conservation program.

The cooperation contract between CV Harsari AMT and local government is to install and maintain system that may optimize the efficiency of electricity for street lightning to more than 30%. The contract adopts model of Share Saving Performance Contract (SSPC) Unsolicited Project. According to the contract, CV Harsari AMT has liability to procure the infrastructure of the system and may bear the risk if the efficiency is less than the amount stated in the contract; while the local government is not required to pay any cost during the installation of infrastructure, therefore there is no expenses of the local government. Once the infrastructure installed, the appraisal should be done to calculate the efficiency. If the system reach a certain level of efficiency as provided in the contract, the local government shall pay service fees as agreed to the CV Harsari AMT. The contract may be done for a term not less than five years. After the contract completion, the system shall be delivered to the local government; however, any intellectual property rights on the system shall be held exclusively by CV Harsari AMT.

CV Harsari AMT facing problems with the reluctant of local governments to enforce their contractual obligations. They fear that it may violate regulation on state finance. KJD Law Firm advises CV Harsari with reviewing its contracts, providing legal opinions, and assisting during negotiation with local government. KJD Law Firm ensures that all business steps taken by CV Harsari AMT comply to the regulations.

Admin Staff

Suka Menulis

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