The world’s best-known fast-food chain, McDonald’s, is bracing for a lengthy legal battle in Indonesia, following a breakup with its local partner of 18 years, Bambang Rachmadi.
A lawyer for the company, Ricardo Simandjuntak, said Tuesday a hearing had been scheduled for August at the South Jakarta District Court, to present representatives from the company’s headquarters in the US.
“A hearing was held on May 19, and the court decided to postpone the first session to August, after considering it would take some time to summon representatives from abroad,” Ricardo said, adding he could not make further statements prior to the court hearing.
McDonald’s has decided to appoint a new master franchisee for its products to replace Bambang, and to sell assets in the form of 97 restaurants to PT Sinar Sosro, producer of Indonesia’s best-selling soft drink, Teh Botol Sosro.
Sinar Sosro president director and shareholder Yoseph Sosrojoyo was quoted by Bisnis Indonesia on Tuesday as confirming the business handover.
However, he said, he was not aware of the conflict between McDonald’s and Bambang.