SUPREME COURT CONFIRMS ICC DECISIONS, PT LUMBUNG CAPITAL IS OBLIGATED TO PAY IDR2.45 BILLION.
The Supreme Court confirms the Decisions of the Indonesian Competition Commission (ICC) on two cases of delay in the notification of the acquisition of shares involving PT Lumbung Capital, the subsidiary of PT Bumi Resources, Tbk, a mining company owned by the Bakrie Group. Based on ICC Decisions Numbers 10/KPPU-M/2019 and 11/KPPU-M/2019 that have been confirmed by the Supreme Court, PT. Lumbung Capital has been proven to have violated Article 29 of Law Number 5 Year 1999 jo. Article 5 of Government Regulation Number 57 Year 2010 regarding the delayed notification of the acquisition of PT Bintan Mineral Resource and PT MBH Minera Resource. Cassation Decisions under registers Numbers 651 K/Pdt.Sus-KPPU/2020 and 579 K/Pdt.Sus-KPPU/2020 that were read out on June 11, 2020, the Supreme Court has upheld ICC Decisions and required PT Lumbung Capital to pay for the stipulated sanction namely in the form of fine amounting to IDR2,450,000,000 (Two Billion Four Hundred and Fifty Million Rupiah) for the two cases.
This case had its origins in the finding of delayed notification of the acquisition of shares by PT Lumbung Capital for 99.92% shares of PT Bintan Mineral Resource that had resulted in a change of control over the company. The acquisition of shares of PT Bintan Mineral Resource was legally effective on June 9, 2014 and had to be notified to ICC prior to July 18, 2014. However, this transaction had just been conveyed to ICC on June 26, 2019. Consequently, ICC judged that the Reported Party has been delayed for 1,199 days in discharging its obligations to give notification. Based on several considerations, the Commission Panel of ICC imposed a fine amounting to IDR1,200,000,000 on PT Lumbung Capital by virtue of a decision as read out on November 5, 2019.
The next transaction, namely the acquisition of 99.968% shares of PT MBH Minera Resource had been judged as legally effective on May 30, 2014 and had to be notified to ICC prior to July 10, 2014. In fact, it had just been conveyed to ICC on June 26, 2019, so that PT. Lumbung Capital had been decided as delayed in discharging its obligations for 1,205 days. Based on the delay, the Commission Panel of ICC imposed a fine amounting to IDR1,250,000,000 by virtue of a decision read out on October 29, 2019.
PT Lumbung Capital was of the different opinion with regard to the imposition of fine in ICC decision and had lodged an objection through the South Jakarta District Court. However, the District Court has conversely confirmed ICC Decision through its Decisions Number 985/Pdt.G.KPPU/2019/PN.Jkt.Sel., and Number 986/Pdt.Sus.KPPU/2019/PN.Jkt.Sel.