Indonesia Investment Authority (INA) has responded after winning an investment dispute against PT Kimia Farma (Persero) Tbk (KAEF) at the Singapore International Arbitration Centre (SIAC). The dispute involved INA’s subsidiary and China’s Silk Road Fund (SRF) against PT Bio Farma (Persero), KAEF, and Kimia Farma Apotek (KFA) (29/07).

INA Chief Legal Counsel Arisia Pusponegoro said INA respected the arbitration process. However, she emphasized that INA and its investment partner have legal rights that must be followed by KAEF in accordance with the SIAC decision.

“INA and our partners have exercised all available remedies or legal rights available to us based on contracts and applicable regulations. As investors and investment partners, it is our responsibility to exercise our rights according to the law and the agreements,” Arisia said during a media discussion at INA’s office in Jakarta on Wednesday (29/7/2026).

INA and Silk Road Fund Exercise Legal Rights After SIAC Decision

INA and SRF invested in KFA, a subsidiary of KAEF, in 2022. The total investment value reached Rp1.86 trillion for a 40% ownership stake in KFA.

In October 2024, INA and SRF submitted a claim to SIAC regarding investment funds and costs worth around Rp2.2 trillion.

INA and SRF were later reported to have won the arbitration dispute in mid-June 2026.

However, Arisia did not provide details about the steps INA would take after the arbitration ruling. She also declined to comment further on allegations of financial report manipulation at KAEF, saying the matter falls under the company’s authority.

“I cannot comment on that yet because we invested together with an investment partner. This is something that is part of our discussions,” Arisia said.

Kimia Farma Begins Review of Arbitration Ruling

Kimia Farma Secretary Ida Rasita said the company respected the international arbitration decision. She said KAEF is still reviewing the ruling and coordinating with relevant stakeholders.

Ida stated that KAEF continues to comply with applicable laws and regulations. The company also remains cooperative with authorities in line with good corporate governance principles.

“The company is currently conducting a comprehensive review of the decision and coordinating with all relevant stakeholders to seek the best solution to protect the interests of the company and shareholders as regulated under applicable laws, while ensuring the company can continue providing healthcare services to the public,” Ida wrote in an information disclosure statement dated 30 June 2026.

Dispute Related to Alleged CSSPA Violations and Financial Information

Based on KAEF’s 2025 financial report, the INA affiliate involved in the dispute was PT Akar Investasi Indonesia, along with SRF subsidiary CIZJ Limited.

In 2024, Akar Investasi Indonesia and CIZJ Limited sent letters to KAEF and KFA regarding alleged violations of the Conditional Share Subscription and Purchase Agreement (CSSPA).

The agreement was signed on 13 November 2022 by KAEF, INA, CIZJ, SRF, and KFA.

The alleged violations were related to information considered inaccurate or incomplete that was provided to Akar and CIZJ, including KFA’s financial information used as the basis for completing the capital increase process.

PHOTO: JPNN.COM

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