INA and SRF Win Arbitration Dispute Against Kimia Farma

After nearly two years, the business dispute between Indonesia Investment Authority (INA) and Silk Road Fund Co Ltd (SRF) against PT Kimia Farma Tbk (KAEF) and PT Kimia Farma Apotek (KFA) at the Singapore International Arbitration Center (SIAC) has reached a conclusion. The dispute, involving investment funds and costs worth Rp 2.2 trillion, was filed with the SIAC on 23 October 2024. Three sources from state-owned enterprises and the government told Tempo that the Singapore arbitration court ruled in favour of INA and SRF in mid-June 2026. The dispute stemmed from a misstatement in KFA’s financial reports for 2021 and 2022, as well as the financial reports of PT Kimia Farma Diagnostik (KFD). Consequently, PT Bio Farma (Persero) and KAEF are jointly liable to return the funds and investment to INA and SRF amounting to approximately Rp 2.2 trillion, as they acted as guarantors in the dispute. INA VP of Communication Putri Dianita Ruswaldi declined to comment on the arbitration ruling. KAEF President Director Djagad Prakasa Dwialam and Bio Farma Corporate Communications Yuni Miyansari did not respond to Tempo’s requests for confirmation. The case originated from a misstatement of financial reports, which INA and SRF argued led to erroneous investment decisions made on 13 November 2022 through a rights issue, divestment, and the issuance of mandatory convertible bonds (MCB) to KAEF and KFA. Separately, the Attorney General’s Office has been investigating alleged corruption related to this corporate action since early 2026, with a probe into Rp 1.86 trillion in investment funds. KAEF’s acting Finance and Risk Management Director stated the company complies with applicable laws and remains cooperative with authorities, while Bio Farma’s Corporate Secretary expressed readiness to support the investigation.