INA-SRF Rp2.2 Trillion Claim Cannot Yet Be Executed, Says Kimia Farma

PT Kimia Farma (Persero) Tbk has affirmed that the international arbitration ruling in the investment dispute between Indonesia Investment Authority (INA) and Silk Road Fund (SRF) cannot yet be executed in Indonesia.

The dispute relates to an investment transaction and share ownership in PT Kimia Farma Apotek (KFA), a subsidiary of Kimia Farma.

Corporate Secretary of Kimia Farma, Ida Rasita, explained that under applicable legal provisions, a foreign arbitration award may only be recognised and enforced in Indonesia after it has been registered by the claimant at the Central Jakarta District Court.

“Recognition and enforcement of a foreign (international) arbitration award may only be carried out within the territory of the Republic of Indonesia after registration by the claimant at the Central Jakarta District Court and the issuance of an exequatur order by the Chief Judge of the Central Jakarta District Court,” said Ida when contacted by RMOL on Saturday, 22 August 2026.

At present, Kimia Farma is still conducting a comprehensive review and coordinating with all relevant stakeholders regarding the ruling.

“The Company is conducting a comprehensive review of the ruling and coordinating with all relevant stakeholders, in order to seek the best solution to protect the interests of the Company and its shareholders,” she stressed.

Kimia Farma also confirmed that the arbitration ruling does not disrupt the company’s operational activities. All activities, from manufacturing, distribution, pharmacies to health services, continue to run optimally.

“In conducting its business activities, the Company always submits to, complies with, and is guided by the applicable laws and regulations, and remains cooperative with the competent authorities in accordance with the principles of good corporate governance,” she said.

The case originated from the investment by INA and SRF in Kimia Farma’s subsidiary KFA in 2022. At that time, the two investors injected capital amounting to Rp1.86 trillion to acquire a 40 percent shareholding in KFA.

However, problems subsequently arose regarding the investment transaction. In October 2024, INA and SRF brought the matter to the Singapore International Arbitration Centre (SIAC), suing Kimia Farma, PT Bio Farma, and KFA.

The value of the claim filed reached approximately Rp2.2 trillion. The case relates to the use of investment funds and financial reports that formed part of the investment transaction and share ownership in KFA.

After going through the arbitration process, SIAC in mid-June 2026 issued a ruling in favour of INA and SRF.