PT Kimia Farma (Persero) Tbk has affirmed that the international\narbitration ruling in the investment dispute between Indonesia\nInvestment Authority (INA) and Silk Road Fund (SRF) cannot yet be\nexecuted in Indonesia.<\/p>\n
The dispute relates to an investment transaction and share ownership\nin PT Kimia Farma Apotek (KFA), a subsidiary of Kimia Farma.<\/p>\n
Corporate Secretary of Kimia Farma, Ida Rasita, explained that under\napplicable legal provisions, a foreign arbitration award may only be\nrecognised and enforced in Indonesia after it has been registered by the\nclaimant at the Central Jakarta District Court.<\/p>\n
\u201cRecognition and enforcement of a foreign (international) arbitration\naward may only be carried out within the territory of the Republic of\nIndonesia after registration by the claimant at the Central Jakarta\nDistrict Court and the issuance of an exequatur order by the Chief Judge\nof the Central Jakarta District Court,\u201d said Ida when contacted by RMOL\non Saturday, 22 August 2026.<\/p>\n
At present, Kimia Farma is still conducting a comprehensive review\nand coordinating with all relevant stakeholders regarding the\nruling.<\/p>\n
\u201cThe Company is conducting a comprehensive review of the ruling and\ncoordinating with all relevant stakeholders, in order to seek the best\nsolution to protect the interests of the Company and its shareholders,\u201d\nshe stressed.<\/p>\n
Kimia Farma also confirmed that the arbitration ruling does not\ndisrupt the company\u2019s operational activities. All activities, from\nmanufacturing, distribution, pharmacies to health services, continue to\nrun optimally.<\/p>\n
\u201cIn conducting its business activities, the Company always submits\nto, complies with, and is guided by the applicable laws and regulations,\nand remains cooperative with the competent authorities in accordance\nwith the principles of good corporate governance,\u201d she said.<\/p>\n
The case originated from the investment by INA and SRF in Kimia\nFarma\u2019s subsidiary KFA in 2022. At that time, the two investors injected\ncapital amounting to Rp1.86 trillion to acquire a 40 percent\nshareholding in KFA.<\/p>\n
However, problems subsequently arose regarding the investment\ntransaction. In October 2024, INA and SRF brought the matter to the\nSingapore International Arbitration Centre (SIAC), suing Kimia Farma, PT\nBio Farma, and KFA.<\/p>\n
The value of the claim filed reached approximately Rp2.2 trillion.\nThe case relates to the use of investment funds and financial reports\nthat formed part of the investment transaction and share ownership in\nKFA.<\/p>\n
After going through the arbitration process, SIAC in mid-June 2026\nissued a ruling in favour of INA and SRF.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ina-srf-rp2-2-trillion-claim-cannot-yet-be-executed-says-kimia-farma-1787446213", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }