186 / 204
Notes To The
Financial Statements
As at 31 March 2019
38. Material litigation (cont’d.)
(a) Hak Guna Usaha No. 01/Nunukan Utara (cont’d.)
On 13 June 2017, the State Administrative Court delivered an oral judgment and dismissed the application
filed PTNJL to annul the Ministerial Order. On 21 June 2017, PTNJL had filed an application to the Court of
Appeal to appeal against the decision of the State Administrative Court.
The Pengadilan Tinggi Tata Usaha Negara Jakarta vide its written decision dated 11 December 2017:
(i) has partly allowed PTNJL’s appeal against the State Administrative Court’s decision, with costs;
(ii) has declared that the Ministerial Order revoking PTNJL’s HGU to be void, save for the areas overlapping
with forestry areas/third party interests measuring 5,138 hectares; and
(iii) has ordered the Defendant to revoke the Ministerial Order save for the areas overlapping with forestry
areas/third party interests measuring 5,138 hectares.
Subsequently, PTNJL filed its statement of appeal on 10 January 2018 and appeal on 23 January 2018 to
the Mahkamah Agung Republik Indonesia (“Mahkamah Agung”) in respect of the aforesaid decision.
Mahkamah Agung, vide its written decision dated 21 August 2018, has allowed PTNJL’s appeal and ruled
that the Ministerial Order revoking PTNJL’s HGU be annulled. The Mahkamah Agung also ordered the
Defendant, to simultaneously:
(i) issue an order cancelling PTNJL’s HGU rights over the areas overlapping with third party interests
measuring 3,500 hectares; and
(ii) issue a new HGU certificate in favour of PTNJL for an area measuring 16,474.130 hectares, (which is
19,974.130 hectares less the 3,500 hectares referred to in paragraph (i) above).
PTNJL is currently taking the necessary legal steps to enforce the court’s decision.
The amount of write back relating to the impairment of property, plant and equipment previously affected
by the Ministerial Order was RM23,631,000 which has been reflected in the Note 6 and Note 12.
On 18 February 2019, PTNJL’s solicitors has received notice (which was subsequently forwarded to PTNJL
on 19 February 2019) that the Defendant has filed an application for judicial review together with its
judicial review memorandum at the Mahkamah Agung on 8 February 2019. The Defendant is seeking to set
aside the Mahkamah Agung’s written decision dated 21 August 2018 on grounds that the court had among
others misapplied the law to the relevant facts in arriving at the decision. PTNJL has on 18 March 2019
filed a counter memorandum at the Mahkamah Agung in response to the said application. The decision is
currently pending.
Under Indonesian laws and regulations, commencement of judicial review proceedings does not prevent
the implementation of the Mahkamah Agung’s written decision as aforesaid.
182
Fima Corporation Berhad
(21185-P)
Annual Report 2019