190 / 204
Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
188
40. Material litigation (cont’d.)
Hak Guna Usaha No. 01/Nunukan Utara (cont’d.)
(a) PTNJL’s basis for the Lawsuit are inter alia as follows:
(i)
The status of the Total Parcel is State Land, aligned with the condition imposed by prevailing laws and regulations in
Indonesia; and
(ii) The revocation of the HGU certificate is contrary to the prevailing laws and regulations in Indonesia.
On 13 June 2017, the State Administrative Court dismissed the Lawsuit (“State Administrative Court’s Decision”) resulting in an
appeal lodged by PTNJL in the High Administrative Court (“High Court”) of Jakarta, Indonesia, on 24 July 2017 (“Appeal”).
Vide written decision dated 11 December 2017, the High Court partly allowed the Appeal with costs and ordered that (i) the
Revocation to be void and the Revocation Letter be annulled, save for the Overlapping Parcel; (ii) that the Overlapping Parcel
be increased to 5,138 hectares. (“High Court Decision”).
On 23 January 2018, PTNJL has lodged an appeal to the Supreme Court of Indonesia (“Supreme Court”) against the High Court
Decision. On 21 August 2018, the Supreme Court allowed PTNJL’s appeal and similarly ordered that the Revocation Letter be
annulled (“Decision of the Supreme Court”). The Supreme Court also ordered the Minister to simultaneously:
(i)
issue an order cancelling PTNJL’s rights over the Overlapping Parcel measuring 3,500 hectares; and
(ii) ensure the issuance of a new certificate in favour of PTNJL to use the remaining area measuring 16,474.130 hectares,
(which is 19,974.130 hectares less the 3,500 hectares referred to in paragraph (i) above).
On 8 February 2019, the Minister filed an application in the Supreme Court to review the Decision of the Supreme Court (“JR
Application”).
On 27 November 2019 the Supreme Court overturned the Decision of the Supreme Court in favor of the Minister upholding the
legitimacy and the validity of the Revocation (“JR Decision”).
PTNJL subsequently filed a further application for judicial review against the JR Decision (“2nd JR Application”). PTNJL’s
application for the 2nd JR Application is made on grounds that the JR Decision contradicts some aspects of other established
cases and the discovery of new material evidence that was not previously available. As at today, the Supreme Court has not
issued any decision in respect of the 2nd JR Application.
(b) On 28 November 2019, PTNJL has filed a civil suit in the State Administrative Court (“the Court”) against the NLB and a Third
Party (collectively, Defendants”). The President Republik Indonesia and Minister of Environmental Affairs and Forestry of
Republic of Indonesia (“Ministry”) have been named as co-defendants in the said suit.
PTNJL is seeking legal recognition of its rights over HGU; an injunction to:
(i)
order NLB and Ministry to issue permit, recommendation, or approval for PTNJL to undertake its plantation activities;
(ii) bar the Third Party from preventing PTNJL from undertaking its plantation activities within the HGU areas which overlap
with the Third Party’s operating permits/interests; and
(iii) restrain the Minister from issuing any new licences permits or approvals to any parties on or within the HGU.