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Indonesian court orders Antam to compensate Surabaya Tycoon Budi Said with 1.1 tons of gold bullion

In a recent legal judgment, the Indonesian Supreme Court dismissed the Review Petition brought by the mining giant, Antam, against Surabaya tycoon Budi Said.

The decision enforces a previous cassation verdict, compelling Antam to compensate Budi Said with 1,136 kilograms of gold, valued at approximately IDR 1.15 trillion ( U$74.8 million).

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INDONESIA – In a recent decision, the Indonesian Supreme Court, or Mahkamah Agung (MA), has rejected the Review Petition (Peninjauan Kembali or PK) submitted by Aneka Tambang Inc. (Plc) (ANTM), commonly known as Antam, against Surabaya-based tycoon Budi Said.

This ruling upholds the legal force of the previous cassation decision filed by Budi Said.

The court’s decision mandates that Antam must compensate Budi Said with 1,136 kilograms (approximately 1.1 tons) of gold bullion.

Based on the current price of Antam gold, which stands at IDR 1,015,600,000 per kilogram, the value of the gold compensation amounts to approximately IDR 1.15 trillion (approximately U$74.8 million).

The official announcement of the rejection of the PK was made by the Supreme Court on Tuesday (12 Sep).

The decision was rendered by the panel chaired by Yakup Ginting, with members Muh. Yunus Wahab and Nani Indrawati.

Antam had filed the PK through its Chief Executive Officer, Nicolas D. Kanter, on June 21, 2023, under case number 158/PDT.G/2020/PN.SBY.

The legal dispute background

The origins of this legal dispute trace back to Budi Said’s purchase of 7,071 kilograms of gold through Antam’s Surabaya, East Java branch, worth IDR 3.5 trillion (approximately US$ 227 million), in 2018.

However, Budi Said received only 5,935 kilograms of the agreed gold bars, leaving a discrepancy of 1,136 kilograms of gold that Antam had failed to deliver.

According to Budi Said, the payment for the gold had been transferred to Antam as per their agreement.

Illustration.

Budi Said’s interest in buying the gold was sparked by a discounted price program presented by Antam’s marketing representative, Eksi Anggraeni.

After making gradual payments via transfers, Budi Said never received the remaining gold.

As a result of the non-delivery, Budi Said felt deceived and subsequently sent a letter to PT Antam’s Surabaya branch.

However, there was no response to the letter. Budi Said then sent a letter to Antam’s central office in Jakarta, but Antam’s headquarters claimed they had never sold gold at a discounted price.

This dispute eventually led to legal action, with Budi Said filing a lawsuit against Antam at the Surabaya District Court over the outstanding gold.

After a lengthy legal process, Budi Said emerged victorious.

Antam’s response

In response to the Supreme Court’s decision, Antam’s Corporate Secretary Division Head, Syarif Faisal Alkadrie, stated that the company respects the ruling but is awaiting an official copy of the decision.

He commented, “However, we are still waiting to obtain a copy of the said decision.”

He emphasized that the company had fulfilled its rights and obligations in all buying and selling transactions in accordance with applicable rules.

Faisal added that the accusations made by the plaintiff were the actions of individuals acting beyond their authority and against company rules.

Faisal also emphasized that, as a publicly traded company, Antam is bound by various regulations and regularly monitored by government agencies, ensuring that it conducts business practices in line with good corporate governance principles and applicable regulations.

Following the Supreme Court’s decision, the stock price of PT Aneka Tambang Tbk (ANTM) plummeted in Monday’s (18 Sep) trading.

Quoting RTI Business, an application for buying and selling stocks created by one of the economic media companies in Indonesia, on Monday (18 Sep) at 14:20 local time, ANTM shares were observed to decline by 2.11% or 40 points to Rp 1,860 per share.

Throughout the session, ANTM shares traded within the range of Rp 1,860 to Rp 1,960. ANTM’s market capitalization reached Rp 44.70 trillion with a P/E ratio of 11.83 times. In the last six months, ANTM shares have corrected by 8.37%.

Budi Said, renowned “crazy rich” from Surabaya

Budi Said, the recipient of the gold compensation, is a well-known “crazy rich” figure hailing from Surabaya.

He serves as the CEO of Tridjaya Kartika Group Inc., a property development company in Surabaya, East Java.

Some of the prominent residential projects under Tridjaya Kartika Group include Kertajaya Indah Regency, Florencia Regency, and Taman Indah Regency. These developments are located in the elite areas of East Java, specifically in East Surabaya and Sidoarjo.

In addition to real estate, Budi Said owns Plasa Marina, a shopping center situated in the upscale Margorejo Indah area of Surabaya, East Java.

Plasa Marina is renowned for its IT center. Apart from that, Budi Said also possesses Puncak Marina apartments, which are located in close proximity to Plasa Marina.

These businesses have earned Budi Said the moniker of a “crazy rich” individual in Surabaya.

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Civil Society

Three women to contest charges over pro-Palestinian procession outside Istana

Three Singaporean women, charged under the Public Order Act for organizing a pro-Palestinian procession on 2 February, will contest their charges at trial, a court heard on 18 September. About 70 people participated in the February event, carrying watermelon-adorned umbrellas as a symbol of Palestinian resistance while delivering letters to then-Prime Minister Lee Hsien Loong.

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SINGAPORE: Three Singaporean women charged in connection with a pro-Palestinian procession to the Istana will contest their charges at trial, a court heard on Wednesday (18 September).

The defendants are Annamalai Kokila Parvathi, 35, an activist with the Transformative Justice Collective (TJC); Siti Amirah Mohamed Asrori, 29, a social media influencer; and Mossamad Sobikun Nahar, 25, a community worker.

They were charged in June under the Public Order Act for organizing an unpermitted procession on 2 February.

During the court hearing on Wednesday, the trio, through their lawyer, indicated their intention to contest the charges and claim trial.

Siti Amirah and Mossamad are accused of organizing the procession that occurred between 2pm and 3pm along the perimeter of the Istana, a restricted area.

Kokila is charged with abetting the conspiracy by collaborating with Siti, Mossamad, Alysha Mohamed Rahmat Shah, Anystasha Mohamed Rahmat Shah, and other unnamed individuals to organize the event.

According to a previous police statement, around 70 people gathered outside a mall on Orchard Road at about 2pm on 2 February before marching towards the Istana.

They carried umbrellas painted with watermelon images, symbolizing support for Palestinians amidst the ongoing Israel- Palestinian conflict.

The watermelon, reflecting the colors of the Palestinian flag, has become a symbol of solidarity.

Social media posts indicate that participants of the Letters for Palestine event walked from Plaza Singapura to the Istana to deliver letters addressed to then-Prime Minister Lee Hsien Loong.

The cases have been adjourned to October for pre-trial conferences.

If convicted under the Public Order Act, the women face a potential penalty of up to six months’ imprisonment, a fine of up to S$10,000, or both.

The police have reiterated their call for the public to avoid actions that could disrupt peace, public order, and social harmony in Singapore.

They advised that while strong feelings about the Israel-Hamas conflict are understandable, lawful means of expression, such as participating in organized forums, dialogues, and donation drives, are preferable to illegal protests.

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Court Cases

New Silkroutes Group ex-director jailed for market rigging; Prosecutors label Goh Jin Hian as ‘mastermind’

Teo Thiam Chuan William, former finance director of New Silkroutes Group (NSG), was sentenced to 12 weeks in jail on 16 September for his involvement in a market rigging scheme. The prosecution labeled co-accused Goh Jin Hian, former CEO and son of ex-Prime Minister Goh Chok Tong, as the “mastermind” behind the conspiracy to inflate NSG’s share price from S$0.285 to S$0.50 in 2018.

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SINGAPORE: Teo Thiam Chuan William, the former finance director at New Silkroutes Group (NSG), has been sentenced to 12 weeks in jail on Monday (16 September) in court for his role in a market rigging scheme.

This sentencing marks the first revelation of case details as Teo is the first among four co-accused to plead guilty.

During sentencing argument, the prosecution has labeled former CEO Goh Jin Hian as the “mastermind” behind the scheme.

Teo, 55, pleaded guilty to six charges under the Securities and Futures Act for abetment by conspiracy over false trading and market rigging transactions.

Goh, the son of former Prime Minister Goh Chok Tong, is alleged to have led a conspiracy to inflate NSG’s share price from S$0.285 to S$0.50 in 2018.

NSG, an investment holding company listed on the Singapore Stock Exchange (SGX) since 2002, operates subsidiaries in oil trading, information technology, and healthcare.

As the finance director, Teo was responsible for managing the company’s accounts, overseeing funding, mergers, and acquisitions. He also controlled NSG’s corporate securities trading accounts and was authorized to conduct share buybacks.

The co-accused in the case include Oo Cheong Kwan Kelvyn, 53, who was the executive director and chief operating officer of NSG, and Huang Yiwen, 40, the sole director of the commercial market maker GTC Group.

Originally, NSG focused on oil trading, electronics, and IT product distribution.

In December 2016, the company expanded into healthcare by acquiring clinics and medical supply companies. These acquisitions were primarily financed through the issuance of NSG shares.

However, in 2017, NSG’s efforts to acquire additional companies and raise capital through private placements were hampered by a decline in its share price.

From January to May 2017, NSG’s share price fluctuated between S$0.70 and S$0.90. However, it dropped to approximately S$0.40 to S$0.50 in June and fell further to a low of S$0.285 in November.

On 29 November 2017, NSG applied to halt trading of its shares, which led to a trading suspension a few days later. During the suspension, which lasted until 25 February 2018, NSG entered into several corporate transactions involving potential new share issuances.

On 21 February 2018, NSG proposed a placement of over 11 million new shares at S$0.44 per share to an external investor, Dr Andrew Chua Soon Kian, aiming to raise S$5 million. This placement was completed in March 2018.

Additionally, in February 2018, NSG announced a memorandum of understanding with Mr Shen Yuyun to acquire two medical supply companies in Shanghai, planning to issue new shares at S$0.50 each for the S$65 million acquisition.

The same month, NSG also disclosed a memorandum of understanding with Haitong International Securities, where Haitong would subscribe to a S$5 million convertible bond issued by NSG. The bond, maturing in two years, would offer an annual interest rate of 5 percent.

Prosecution Alleges Complex Scheme to Manipulate NSG Share Prices Using Multiple Accounts

While trading was suspended, Teo and his three co-accused allegedly engaged in a scheme to artificially inflate the price of NSG securities, according to the prosecution.

The scheme, as outlined by the prosecution, employed three primary methods: using GTC’s trading account to place and execute orders for NSG securities, utilizing NSG’s share buyback accounts for similar trades, and leveraging Goh Jin Hian’s personal trading account for additional transactions.

As a commercial market maker registered with SGX, GTC was prohibited from manipulating share prices. Market makers are typically required to enhance trading liquidity by providing competitive bid-ask quotes continuously within an agreed-upon spread.

Despite this, Teo, Goh, and Oo are alleged to have hired GTC to artificially boost and maintain NSG’s share price, masquerading as legitimate market-making activities. This manipulation aimed to enhance investor confidence and facilitate the completion of announced corporate transactions, as well as support future share placements.

On 4 February 2018, Goh reportedly instructed Teo to find a market maker to support NSG’s share price. Subsequently, NSG engaged GTC between 21 and 28 February 2018.

Goh, Teo, and Oo allegedly set a target price of S$0.50 for GTC to achieve.

Over the course of six months, starting from late February 2018, the four men are said to have conducted the market-rigging scheme.

Goh and Co-Accused Allegedly Discussed Timing and Pricing for NSG Trades

They communicated via text messages and emails to coordinate their actions, including timing and pricing for NSG securities trades. For instance, Goh allegedly urged Teo to place bids at specific times and requested that GTC be reminded of their target price of S$0.50 in an email.

In a group chat, Goh is said to have suggested delaying GTC’s payment until the share price reached S$0.40 by May.

The trading suspension on NSG shares was lifted after the market closed on 25 Feb 2018. The following morning, Teo and his co-accused allegedly strategized to boost the opening share price of NSG to reach their target.

According to the prosecution, Huang used GTC’s trading account to place buy orders during the pre-market routine before trading officially began at 9 am.

On 26 Feb 2018, NSG shares opened at S$0.390, representing a 36.84 percent increase from the last traded price of S$0.285.

Teo and Huang continued to place orders and execute trades in early March 2018 to further artificially inflate the share price.

The prosecution sought a 12-week jail sentence for Teo, describing the scheme as “sophisticated, well-coordinated, and effective” in manipulating the price of NSG shares to facilitate corporate transactions. They emphasized that Teo played a “critical role” as finance director in the scheme.

The prosecution noted that the scale of the market rigging was significant, causing “great distortion” in the market for NSG securities.

Pre-Trial Conferences for Goh, Huang, and Oo Set for 26 September

On the 31 days covered by Teo’s charges, the trades and orders executed by Teo, Huang, and Goh accounted for 28.78 percent of the total market volume of buy trades.

Additionally, they set the intraday high on 11 trading days and increased the closing price of NSG securities on 22 trading days.

The prosecution argued that the scheme was a “concerted and successful effort” to make NSG shares appear more attractive than they would have under normal market conditions.

It was intended as a “quick and convenient way” to support NSG’s expansion and raise capital through new share issuances. The use of GTC was described as creating “a veneer of legitimacy” for their manipulative trades.

Although Goh was identified as the mastermind, prosecutors highlighted Teo’s important role as the main liaison between NSG and Huang.

Teo is set to begin his jail term on Wednesday (18 Sept).

The cases for Goh, Huang, and Oo are currently at the pre-trial conference stage, with the next session scheduled for 26 September. Court records indicate that Huang intends to plead guilty.

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