SUPREME COURT CORROBORATES DECISION OF ICC ON DELAYED NOTIFICATION OF PT CITRA PRIMA SEJATI.

The Supreme Court corroborates the Decision of the Indonesian Competition Commission (ICC) Number 01/KPPU-M/2019 regarding Alleged Violation of Article 29 of Law Number 5 Year 1999 jo. Article 5 of Government Regulation Number 57 Year 2010 regarding Delayed Notification of Acquisitions of Shares of PT Buana Minera Harvest (BMH) by PT Citra Prima Sejati (CPS). Therefore, the Cassation Decision under register Number 581K/Pdt.Sus-KPPU/2020 and decided on June 9, 2020 confirms Decision of ICC, so that PT Citra Prima Sejati (constituting a subsidiary of PT Bumi Resources, Tbk) is required to pay for a fine set in the amount IDR10,330,000,000 (Ten Billion Three Hundred and Thirty Million Rupiah).

This case stemmed from the finding of the delay notification of the acquisition of shares by PT Citra Prima Sejati of 99.96% shares of PT Buana Minera Harvest and resulted in a change in the controlling party of the company. The acquisition of shares which was effective as of December 24, 2013 and had to be notified to ICC before February 7, 2014, had just been submitted to ICC on April 26, 2019. Consequently, ICC considers that the Reported Party has been late in discharging its obligations for notification for 1,220 (one thousand and two hundred and twenty) days or 5 (five) years 2 (two) months and 14 (fourteen) days. Based on various considerations, the Commission Panel handed down a fine of IDR10,330,000,000 to the Reported Party through a decision read out on October 1, 2019.

PT Citra Prima Sejati disagreed with the Decision of ICC and had filed an objection through the South Jakarta District Court. However, the said District Court on the contrary corroborated Decision of ICC by virtue of Decision Number 896/Pdt.Sus-KPPU/2019/PN Jkt.Sel., read out on January 7, 2020.