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Notes to the Financial Statements
For the fnancial year ended 31 December 2012
32. Commitments and contingencies (cont’d)
(d) Contingent liabilities
(i) Decision from the Business Competition Supervisory Commission
In May 2010, the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha or “KPPU”) has
issued a decision on case No. 24/KPPU-I/2009, whereby PT SIMP and several other edible oil producers (together, the
“Edible Oil Producers”), were judged for violation of Articles 4, 5 and 11 of Law No. 5, Year 1999 regarding prohibition
of monopolistic practices and unfair business competition, and ordered penalties to each of the Edible Oil Producers.
The penalty which was ordered to PT SIMP amounting to Rp25.0 billion. In June 2010, the Edible Oil Producers,
including PT SIMP, fled objections against the said KPPU decision to the each domicile District Court (Pengadilan
Negeri). On 13 August 2010, the Supreme Court issued a decree that appointed the Central Jakarta District Court to
examine and decide on the objections fled by the Edible Oil Producers against the above-mentioned KPPU decision.
On 23 February 2011, the Central Jakarta District Court issued a decision in favor of the Cooking Oil Producers. On
31 March 2011, the Central Jakarta District Court issued the copy of its decision to PT SIMP. Pursuant to the notes in
said copy of decision, on 8 March 2011, KPPU has fled an application for cassation to the Supreme Court against the
decision from the Central Jakarta District Court. On 12 May 2011, PT SIMP fled a counter memorandum of cassation
against such KPPU’s memorandum of cassation. As stated on the offcial website of the Supreme Court, the Panel
of Judges of the Supreme Court has rejected KPPU’s cassation application on 25 November 2011. On 3 July 2012,
the Company received the offcial copy of the Supreme Court decision dated 25 November 2011. The case is now
considered to be fnal and binding.
(ii) Dispute of PT LPI’s HGU certifcate
(a) On 5 May 2011, Mr. Ketut Suwece, a resident of Harapan Jaya village, Ogan Komering Ulu Timur District (“OKUT”),
fled a lawsuit against PT LPI to the District Court of Baturaja (Pengadilan Negeri Baturaja), South Sumatra, to
claim for the losses of Rp17.4 billion for two parcels of land with a total area of approximately 143 hectares located
at Campang Tiga Ulu village, OKUT, including trees planted thereon, as well as request for a sequestration. On
3 November 2011, the District Court of Baturaja, South Sumatra has issued a verdict to reject all of the lawsuit
fled by Mr. Ketut Suwece against PT LPI. Subsequently on 4 November 2011, Mr. Ketut Suwece fled an appeal
to the High Court of Palembang against the decision from the District Court of Baturaja, South Sumatra.
On 5 July 2012, the Panel of Judges of the High Court of Palembang upheld the District Court of Baturaja’s
decision. On 30 July 2012, PT LPI received an offcial copy of the decision from the High Court of Palembang.
On 9 January 2013, PT LPI received an offcial notifcation from the South Jakarta District Court that Mr. Ketut
Suwece has fled an application for cassation to the Supreme Court against the decision of the High Court of
Palembang. On 22 January 2013, PT LPI fled a counter memorandum of cassation against Mr. Ketut Suwece
memorandum of cassation. Until end of February 2013, the Supreme Court has not issued a verdict yet.
The Group has been advised by its legal council that it is not probable, that the legal action will succeed, and accordingly,
no provision for any liability has been made in the consolidated fnancial statements as at 31 December 2012.
(b) On 5 December 2011, Mr. Putra Marhan and the other plantiffs fled a lawsuit against PT LPI to the District Court
of Baturaja (Pengadilan Negeri Baturaja), South Sumatra, to claim for indemnity amounting to Rp16.4 billion for
land with a total land area of 88.9 hectares located at Mungin Jaya Village, OKUT, including trees planted thereon.
On 13 August 2012, PT LPI has received the offcial copy of the District Court of Baturaja decision which was fnal
and binding, which rejected all the lawsuit fled by Mr. Putra Marhan and other plaintiffs to the PT LPI.
The Group has been advised by its legal council that it is not probable, that the legal action will succeed, and accordingly,
no provision for any liability has been made in the consolidated fnancial statements as at 31 December 2012.
Indofood Agri Resources Ltd. • Annual Report 2012 129