SUPREME COURT CONFIRMS DECISION OF ICC ON PT SARANA FARMINDO UTAMA.

The Indonesia Competition Commission (ICC) was won by the Supreme Court in a Cassation filed by PT. Sarana Farmindo Utama (SFU) on the Decision of ICC which decided the delayed conduct case in the notification of acquisition transaction as conducted by the company. The information was obtained from the official report of notification of the contents of Decision of the Supreme Court of the Republic of Indonesia received by ICC yesterday (1/2) from the North Jakarta District Court. Based on such Supreme Court Decision, SFU is obligated to pay for a penalty amounting to IDR2,250,000,000 within 30 (thirty) days as contained in the Decision of ICC.

This case derived from a notification of acquisition conducted by PT Sarana Farmindo Utama of most of the shares of PT. Prospek Karyatama the transaction of which was effective as of January 7, 2016. However, the notification that should have been made before February 18, 2016, was only conveyed to ICC on July 24, 2019. Consequently, SFU, which also constitutes a subsidiary of PT. Charoen Pokphand Indonesia Tbk (CPIN) and is engaged in poultry farming, was delayed for more than 3 (three) years in conveying its notification.

Based on the result of the Commission Panel Session, ICC handed down a Decision on such case Number 28/KPPU-M/2019 on April 14, 2020 and decided that SFU had violated Article 29 of Law Number 5 Year 1999 jo. Article 5 of Government Regulation Number 57 Year 2010. ICC has imposed a sanction in the form of penalty amounting to IDR2,250,000,000 on SFU for such behavior. SFU was not satisfied with the Decision of ICC and lodged an objection to the North Jakarta District Court (PN Jakut). The North Jakarta District Court turned down the application for objection filed by SFU on June 24, 2020. Subsequently, SFU exercised its further remedy through Cassation to the Supreme Court of the Republic of Indonesia. The Supreme Court of the Republic of Indonesia eventually decided to turn down the appeal for Cassation put forward by SFU on October 6, 2020. Therefore, the Decision of ICC has had a permanent legal force and SFU is obligated to execute it.