IWIRC Indonesia

A compilation of all the Quick Takes published so far.

In the case of FIC Properties Sdn Bhd v PT Rajawali Capital International [2024] SGHC(I) 33, a three-member bench of the Singapore International Commercial Court dismissed the applications by PT Rajawali Capital International and PT Rajawali Corpora (collectively, "the Rajawalis") to set aside a Singapore International Arbitration Centre Award and an Enforcement Order. The court found no merit in the Rajawalis' grounds for setting aside, which included allegations of fraud, illegality, and breach of natural justice. The judgment, delivered by Philip Jeyaretnam J, emphasised paragraphs 42 to 44 concerning the fraud allegation. The court clarified that under Singapore law, "fraud" includes "procedural fraud," which involves perjury, concealment of material information, or suppression of evidence with substantial effect on the award's making. Crucially, for conduct to constitute procedural fraud, there must be an intention to deceive the arbitral tribunal. The court found no evidence that FIC Properties Sdn Bhd (“FIC”) intentionally concealed the existence of a pledge (the “GovCo Pledge”) in the arbitration with the intention of deceiving anyone. The existence of the pledge was public information and had been communicated to persons associated with the Rajawalis. Furthermore, the issues framed in the arbitration did not give rise to any obligation on FIC to disclose the pledge or its terms. The court also addressed the Rajawalis' arguments regarding the illegality and natural justice grounds but found them unconvincing. The applications were dismissed, and costs were awarded in FIC's favour, with parties instructed to agree on costs or submit their arguments for the court's determination.

In this Quick Take: - High-yield debt refinancings often involve “passing the bomb” before it blows up in a creditor’s hands. - Sritex’s creditors are now racing to stake their claims on the assets being liquidated.

The Portfolio SOE Financial Results and Annual Report, special thanks to the team responsible for producing this at the Ministry of SOE: Galuh Nuraddinda , Andi Al-Fayed , Hanif Muftiamri Zuhri , Muhammad Alfhatoni, Latief Afidatan Nafis and Muhammad Ariq Khosyi #PortofolioSOE #Governance #BUMN

For your weekend read, OMFIF has just released its latest report, “Global Public Funds and Transition Finance: Risks, Barriers, and Opportunities.” This report features contributions from global sovereign funds and experts, including Thomas Oentoro, Chief Risk Officer of INA. This insightful report delves into the challenges and opportunities of transition finance in achieving net-zero goals. You can download the full report here:  https://lnkd.in/eJZytmXf Wishing you a great weekend ahead! #SustainableInvestment #TransitionFinance #INA #Indonesia

The IFR Asia South-East Asia and India Debt Capital Markets Roundtables 2024 digital edition is now available to view. Read more: https://lseg.group/49G3ssb #sponsored

Sritex administrators receive around USD 2 billion of claims: The Econopost Sritex's court-appointed administrators handling its liquidation received IDR 32.63 trillion (USD 2 billion) of claims that were yet to be verified, The Econopost reported. The Indonesian textile company's preferred creditors, such as workers and the tax office, filed IDR 691.42 billion of claims as of 13 December 2024. Secured creditors had IDR 7.2 trillion of claims, while unsecured creditors submitted IDR 24.73 trillion. As of 20 December 2024, the administrators had identified 179 ownership and right-to-use certificates for land and buildings, most of which were in Central Java. They also located thousands of movable assets, such as factory equipment and vehicles. The administrators opened a window for creditors to submit late claims by filling in a form that can be found on https://lnkd.in/ge2TweU7. For the full story: https://lnkd.in/gAScg96s

🍷 Let's call it a YEAR.

Indonesia Macro News Roundup 1. Indonesia president pledges to pardon 'corrupters' who return what they stole Indonesian President Prabowo Subianto has said he might pardon people who engaged in graft if they return what they stole, underlining his commitment to tackle corruption. Speaking before hundreds of Indonesian university students in Cairo on Wednesday during his visit to Egypt, Prabowo said he would implement a plan to retrieve ill-gotten gains in the coming weeks or months. For the full story: https://lnkd.in/ggdpG2-M 2. Rupiah Erases Losses As Indonesia Vows to Guard Currency The Indonesian rupiah erased its early losses after the central bank intervened in the foreign-exchange market and pledged to boldly guard the currency. “We will guard the rupiah boldly to build market confidence,” Bank Indonesia Executive Director for Monetary and Asset Securities Management Edi Susianto said on Friday. The central bank is intervening in the spot, domestic non-deliverable forward and secondary government bond markets to support rupiah, he said. For the full story: https://lnkd.in/gPz9ZsS7 3. Business groups demand incentives amid salary, VAT hikes Business associations say government incentives for next year, including subsidized loans for labor-intensive industries, are insufficient to support companies facing challenges from multiple directions. A significant rise in the minimum wage will increase operational costs while a value-added tax (VAT) hike may weaken demand for products and services, they argue. The lobby groups are calling for additional incentives, such as a temporary reduction in corporate income tax and regional taxes as well as subsidies for the employer’s portion of the monthly contribution to the Workers Social Security Agency (BPJS Ketenagakerjaan). For the full story: https://lnkd.in/gAJ95TKG

Sritex News Roundup 1. Indonesian government wants Sritex to continue production despite failed appeal Indonesia's government is pushing Sri Rejeki Isman (Sritex) to continue production even though its appeal against its bankruptcy was rejected by the Supreme Court. Coordinating Minister for Economic Affairs Airlangga Hartarto has asked state-owned lender Bank Negara Indonesia (BNI) to lead Sritex's creditors to discuss how to keep the textile company as a "going concern" and preserve its workforce. Hartarto did not give details on how this will be achieved. For the full story: https://lnkd.in/gb8my38x 2. Sritex to apply for judicial review after Supreme Court rejected its appeal Sritex will seek a judicial review after Indonesia's Supreme Court upheld the bankruptcy ruling of a lower court, according to President Director Iwan Kurniawan Lukminto. The company is trying its best to sustain its business and avoid layoffs, but it has limited room due to its bankrupt status, Lukminto said. For the full story: https://lnkd.in/gKgQzxNJ 3. Sritex creditors push for claims verification to continue Sritex's creditors are pushing for the verification of their claims to proceed even though the borrower did not attend the latest meeting. Hundreds of creditors and their lawyers attended the court hearing, but none of Sritex's representatives was present. One of the lawyers for Sritex's bondholders, Rubhen Emerson, objected to a delay suggested by a judge, saying that a debtor that fails to show up should be deemed to accept the submitted claims. For the full story: https://lnkd.in/gs4rUZJa