Astro’s unit loses Jakarta appeal to claim US$303m arbitration award

Astro’s unit loses Jakarta appeal to claim US$303m arbitration award
Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Monday, 09 September 2013 19:19

KUALA LUMPUR (Sept 9): MEASAT Broadcast Network Systems Sdn Bhd (MBNS), a wholly owned subsidiary of Astro Malaysia Holdings Bhd, loses a court appeal to claim US$303 million arbitration award against three Indonesian companies.

MBNS, together with seven other claimants, had applied to enforce the Singapore International Arbitration Centre’s (SIAC) awards against PT First Media Tbk (PT FM), PT Direct Vision (PT DV) and PT Ayunda Prima Mitra (PT APM) in Indonesia.

“MBNS has been informed that the Supreme Court of Indonesia has dismissed its appeal against the CJDC’s decision, inter alia, on grounds that the awards are contrary to public order, amount to interference with Indonesian judicial process and violate the principles of the State and legal sovereignty of Indonesia,” according to a filing by Astro on Bursa Malaysia today.

An arbitral tribunal of the SIAC had in 2010 ruled in favour of the claimants, and granted them an award amounting to US$303 million plus interest.

But the awards remain unpaid by PT FM, PT DV and PT APM, and judgment has been entered in the terms of the awards to date in four jurisdictions – Singapore, Malaysia, Hong Kong and the UK.