Projects » Business Identification Number Service

Resolving a Partnership Dispute and
Continuing Operations

Written by David James Oliver Tuhusula on 20/08/2025
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

Background

An investor provided capital to a business partner in the fishing and fish-processing industry, with a clear agreement for monthly profit-sharing. However, after several months of operation, the investor realized that the agreed-upon profit distributions were not being made. Despite ongoing operations, there were no payouts, which raised concerns regarding the status of the partnership.

Initial Steps

The investor attempted to resolve the dispute directly by contacting the partner company, seeking clarification and a resolution. However, despite their efforts, no satisfactory response was received. Recognizing the need for a more structured approach to resolve the growing dispute, the investor decided to engage external support to take the next steps in recovering the owed profits.

Investigation and Findings

Following the initial outreach, the investor issued formal notices to the partner company, urging them to comply with the terms of the profit-sharing agreement. After sending three notices, a meeting was arranged between the investor’s representatives and the partner company. However, the business’s President Director did not attend the meeting, leading to further complications. During a deeper investigation, it was revealed that the partner company was experiencing significant cash flow issues, which had hindered their ability to meet the financial obligations outlined in the agreement. Despite this, the investor remained firm in the belief that the agreed-upon profit-sharing arrangement should be honored, and the dispute needed to be settled amicably or through legal channels.

Strategic Actions Taken

Rather than allowing the partnership to fall apart entirely, the investor opted to explore a solution that would enable business continuity. Recognizing the potential for the remaining management team to continue operations, the investor chose to proceed without the absent President Director. A new company was established, and a fresh agreement was drafted and signed between the investor and the new entity. This agreement was formally executed through a notarized deed and subsequently registered with the AHU (Administrasi Hukum Umum), and by 25 July, business operations resumed smoothly under the new company structure, ensuring that the original goals of the venture could be achieved.

In parallel, the investor took legal action against the absent President Director. The former executive acknowledged the improper use of funds and agreed to repay the amount owed. A repayment plan was established, with the executive requesting additional time to settle the debt.

Outcome

By taking decisive action, the client successfully secured the continuation of the business under a new entity while holding the former President Director accountable. The client’s investment was protected, and the business operations resumed as planned, demonstrating the client’s ability to navigate and resolve complex disputes while maintaining the venture’s integrity.