Jiangsu Ouyide New Material Technology Co., Ltd. has officially filed a lawsuit with the South Jakarta District Court, accusing PT Virtue Dragon Nickel Industry (VDNI), a well-known Indonesian nickel smelting company, of contract breach and seeking recovery of substantial outstanding debts, with the core principal amount involved reaching 33.408 billion rupiah. The case stems from 13 sales contracts previously signed between the two parties, under which VDNI has long defaulted on the remaining payments. After multiple unsuccessful attempts to recover the debt, the Chinese company initiated legal proceedings. Court documents show that the outstanding balance owed by VDNI is equivalent to 12.5119 million yuan, which is the core subject of this lawsuit. In addition to the principal, the Chinese company has filed multiple claims, demanding overdue interest calculated from May 2023 at an annual rate of 6%, totaling 6.51 billion rupiah in interest.
At the same time, the Chinese company is seeking 1 billion rupiah in non-material damages, plus a daily enforcement fine of 1 million rupiah, which will continue to accumulate if VDNI fails to comply with the court's judgment. To secure the debt, the plaintiff has formally applied to the court for asset preservation, requesting the seizure of multiple core assets of VDNI, including the Autograph Tower office building at Tamrin No. 9 in Central Jakarta, the nickel smelting plant in Konawe Regency, Southeast Sulawesi, and all bank accounts under the company's name. In addition, the Chinese company has requested the court to allow provisional execution of the judgment, meaning that even if VDNI files an appeal or applies for retrial, the judgment can still be enforced first, and the defendant shall bear all litigation costs.
Notably, prior to this debt lawsuit, VDNI had just emerged from a debt payment suspension (PKPU) crisis. Two fuel suppliers had previously applied to the court to initiate VDNI's debt restructuring process, but later withdrew their applications voluntarily. The Jakarta Commercial Court officially dismissed the case, temporarily lifting the bankruptcy restructuring risk for VDNI. It is reported that VDNI, which is affiliated with the Jiangsu Delong Nickel Industry system, is a core investment enterprise in Indonesia's nickel downstream industry. In recent years, due to rising production costs and declining market demand, it has scaled back its overall production capacity. The civil debt case has now entered the judicial trial stage.
