OJK responds to Eagle High Plantations dispute with Felda
Jakarta (ANTARA) - The Financial Services Authority (OJK) has stated that it has received explanations and clarifications regarding the problems occurring between PT Eagle High Plantations Tbk (BWPT) and the Malaysian government’s Federal Land Consolidation and Rehabilitation Authority (Felda).
Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, Hasan Fawzi, said that the transaction in question was purely a share sale and purchase process by BWPT shareholders, and therefore not directly related to the issuer.
“There was one initial shareholder who then agreed to sell to another party at that time, which was indeed accompanied by a put option aspect if the criteria in the terms and conditions of the purchase could not be fulfilled,” Hasan told reporters at the Indonesia Stock Exchange building in Jakarta on Friday.
He explained that the matter has actually been a long-running process and is also undergoing legal proceedings at the arbitration body, namely the Singapore International Arbitration Centre (SIAC).
“This is actually a process that has been quite lengthy, each party has agreed to do this in the context of dispute resolution within the arbitration body,” said Hasan.
Along with that, his party together with PT Bursa Efek Indonesia (BEI) will ensure continued information disclosure regarding the issuer concerned.
Even though, according to him, the problem is actually a transaction carried out between shareholders who originally owned BWPT shares, then sold them to another party with bilaterally agreed terms and conditions, or not directly related to the issuer concerned.
“Even though once again, this is a transaction carried out between shareholders who originally owned BWPT shares, then sold them to another party with bilaterally agreed terms and conditions. So it is not directly related to the issuer concerned,” said Hasan.
Previously, Malaysian Prime Minister Anwar Ibrahim stated that he had sent a letter to Indonesian President Prabowo Subianto to request assistance regarding an investment case in an Indonesian company.
The investment in question is Felda’s investment, made during the era of Malaysian Prime Minister Najib Razak’s leadership, in the Indonesian crude palm oil (CPO) company PT Eagle High Plantations Tbk (BWPT).
“I have written a letter to President Prabowo Subianto, asking him to also look into this matter,” said Anwar.
Anwar Ibrahim did not provide details about the case, but he said that if this issue is not handled, the losses that Felda could suffer due to previous management decisions could reach 2.5 billion ringgit or equivalent to Rp11 trillion (at current exchange rates).
According to reports, Felda has so far been unable to recover its investment funds because BWPT is contesting the matter in Indonesian courts. Additionally, Felda is said to only be able to obtain a refund of 200 million ringgit or around Rp876 billion from its total investment.
In its information disclosure to the Indonesia Stock Exchange, PT Eagle High Plantations Tbk (BWPT) stated that the company has no corporate or contractual relationship with the Federal Land Consolidation and Rehabilitation Authority (Felda) in connection with the company’s share ownership.
The company stated that the party recorded as a shareholder is FIC Properties Sdn. Bhd (FICP), which is an independent legal entity that is different and separate from Felda.
“Therefore, the company is not in a position to confirm or provide explanations regarding information or issues originating from, related to, or being internal affairs of Felda,” said BWPT Corporate Secretary, Rizka Dewi Sulistyorini.