Indonesian Businessman Strikes Back At McDonald’s

Jakarta Globe:

Bambang Rachmadi has fired back at fast-food giant McDonald’s, saying the US-based corporation created “artificial” losses at their domestic joint venture while “sucking” huge earnings out.

“When [the joint venture] was operating in Indonesia from 1991 to 2008, McDonald’s sucked as much as $190 million [from it], mostly from royalties, franchise fees and interest on loans,” but he never received any profits from the venture, Bambang said in a statement last week.

He also claimed McDonald’s dual roles as franchisor and franchisee, as well as lender and borrower, were conflicts of interest.

“Currently, Bambang Rachmadi is processing a lawsuit against McDonald’s in South Jakarta District Court because McDonald’s is considered to have violated laws and have done serious manipulations that caused [him] as a local partner to suffer serious losses,” the statement said.

Bambang and McDonald’s formed PT Bina Nusa Rama in 1991. At one time it operated 97 McDonald’s outlets across the nation, and had accumulated debts of $150 million as of 2007. Read more.

Photo: Yudhi Sukma Wijaya, JG

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