221 / 244
Annual Report 2020
217
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
46. Material litigation (cont’d.)
Hak Guna Usaha No. 01/Nunukan Utara (cont’d.)
On 21 October 2016, PTNJL initiated an action against the Revocation (“Lawsuit”) in the Administrative Court (“State
Administrative Court”) of Jakarta, Indonesia. In the Lawsuit, PTNJL applied for an order for stay of enforcement of
the Revocation until the final judgment is issued.
PTNJL’s basis for the Lawsuit are inter alia as follows:
i)
The status of the Total Parcel is State Land, aligned with the condition imposed by prevailing laws and
regulations in Indonesia; and
ii)
The revocation of the HGU certificate is contrary to the prevailing laws and regulations in Indonesia.
On 13 June 2017, the State Administrative Court dismissed the Lawsuit (“State Administrative Court’s Decision”)
resulting in an appeal lodged by PTNJL in the High Administrative Court (“High Court”) of Jakarta, Indonesia, on
24 July 2017 (“Appeal”).
Vide written decision dated 11 December 2017, the High Court partly allowed the Appeal with costs and ordered
that (i) the Revocation to be void and the Revocation Letter be annulled, save for the Overlapping Parcel; (ii) that
the Overlapping Parcel be increased to 5,138 hectares. (“High Court Decision”).
On 23 January 2018, PTNJL has lodged an appeal to the Supreme Court of Indonesia ("Supreme Court") against
the High Court Decision. On 21 August 2018, the Supreme Court allowed PTNJL's appeal and similarly ordered
that the Revocation Letter be annulled ("Decision of the Supreme Court"). The Supreme Court also ordered the
Minister to simultaneously:
(i)
issue an order cancelling PTNJL's rights over the Overlapping Parcel measuring 3,500 hectares; and
(ii)
ensure the issuance of a new certificate in favour of PTNJL to use the remaining area measuring 16,474.130
hectared, (which is 19,974.130 hectares less than 3,500 hectares referred to in paragraph (i) above).
On 8 February, 2019, the Minister filed an application in the Supreme Court to review the Decision of the Supreme
Court (“JR Application”).
On 27 November 2019 the Supreme Court overturned the Decision of the Supreme Court in favor of the Minister
upholding the legitimacy and the validity of the Revocation (“JR Decision”).