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Former Minister Reported Allegations of Import Corruption by Indonesian Gov’t Officials

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Former Indonesian Minister Rizal Ramli Reported Allegations of Food Import Corruption by Indonesian Government Official to CEC - Photo: Special

JAKARTA (TheInsiderStories) – Former Indonesian Coordinating Minister for Maritime Affairs Rizal Ramli reported eight alleged corruption related to food imports to the Corruption Eradication Commission (CEC). Deputy chairperson of CEC Basaria Pandjaitan received the reports at her office on Tuesday (23/10).

“The officials are addicted to imports. Why? Because every time there is a fee from the import permitt. There is a big advantage enjoyed by importers and government officials,” he told reporters at the CEC office in Jakarta.

Unfortunately, Ramli did not give further explanation, who did he report to the CEC. Before, he accused chairman of Nasional Demokrat Party, Surya Paloh and Minister of Trade Enggartiasto Lukita playing in import policy. He claimed have an evidence in the report and asked the anti-graft body to immediately follow up his report.

In the press release, Ramli said there are eight allegations based on the Audit Board of the Republic of Indonesia. Heres the list:

1. Alleged criminal act due to the issuance of white crystal sugar imports in 2015 until the first semester of 2017 totaling 1,694,325 tons.

2. Alleged criminal acts due to the issuance of 108,000 tons of raw crystal sugar import approval.

3. Alleged criminal acts due to the issuance of the implementation of special rice imports in 2016 totaling 200 tons.

4. Alleged criminal acts due to the issuance of 2015 cattle import approvals of 50,000.

5. Suspicion of criminal acts due to the issuance of the 2016 cattle import agreement of 97,100 tons and the realization of 18,012.91 tons.

6. Alleged criminal act due to the issuance of rice import approval in 2015 until the first semester of 2017 of 70,195 tons with a realization of 36,347 tons.

7. Suspicion of criminal acts due to 9,370 cattle import and 86,567.01 tons of beef.

8. Alleged criminal acts due to the issuance of imported salt in 2015 to the first semester of 3,355,850 tons with a realization of 2,783,487.16 tons.

Paloh’s party is the major supporter of presidential candidate Joko Widodo and Ma’ruf Amin. Several issues was hampered him during Widodo’s government like Sociedade National de Combustiveis de Angola EP (Sonangol EP) case in 2014.

A few weeks ago, his main business associate, Sam Pa, the owner of Sonangol EP, was arrested by a Chinese police in Beijing on bribery case to Fujian province governor Su Shulin with allegations of serious disciplinary violations.

For Widodo and Paloh, the Chinese businessman, is not and ordinary people. The president even signed his first signature as president for bilateral cooperation between the Indonesian government and Sonangol EP.

On May 23, 2015, Widodo also gave a special attention to the construction of the Indonesian Building 1. The 303-meter-high building was built by Paloh, namely Media Group and China Sonangol Land. The total development investment reached Rp8 trillion (US$551.72 million) in central Jakarta.

Last year, Indonesian government has agreed to a 100 thousand barrel purchase of crude oil from Sonangol. Indonesia is promised a discount of 15 percent of the market price. But the discount has never been realized.

US$1: Rp14,500

Written by Staff Editor, Email: theinsiderstories@gmail.com

BI Holds Key Rate in October Meeting to Maintains Economic Stability

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BI's Governor Perry Warjiyo - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesia’s Central Bank (BI) kept its reference seven-day reverse repurchase rate (BI-7DRRR) at 5.75 percent to maintain economic stability, said Bank Indonesia senior deputy governor Mirza Adityawara on Tuesday (23/10). Since early of this year, BI-7DRRR has increased to 125 bps from 4.25 percent in January to 5.75 percent in this month.

“The Board of Governors decided to maintain the BI-7DRRR at 5.75 percent. The decision is consistent to reduce the current account deficit (CAD) to a safe limit and maintain the attractiveness of the domestic financial market so as to strengthen Indonesia’s external resilience amid high global economic uncertainty,” he said.

He also hinted that the CAD in the third quarter (3Q) of this year could be wider than previous quarter of US$8 billion, or equal to 3 percent of the gross domestic product (GDP).

Adityaswara explained the widening of the CAD in 3Q, could be attributed to weak export performance and high growth in imports. But he believed by the end of this year the CAD could lowered to 2.5 percent of GDP with the series of policies that were designed by the government to put a brake on import growth and to encourage the country’s exports.

At the press conference, he also announced starting Nov. 1, BI would effectively allow domestic non-deliverable forward (DNDF) transactions.

What the impact to the financial market on the central bank monetary stance? After having weakened in this morning, the Rupiah rebound from 15,208 to 15,193.45. Yesterday, Rupiah closed at 15,192.

Bank Mandiri Money Market Analyst Reny Eka Putri rated, the Rupiah would move in the range of 15,177 to 15,264 per US dollar due to the lack of domestic sentiment. While, CSA Research Institute Senior Analyst Reza Priyambada estimated that the Rupiah would move in the range of Rp15,185 to Rp15,172 per US dollar.

He expect, the increasing local currency was expected to be able to survive as there were still a number of positive sentiments from the internal.

Email: linda.silaen@theinsiderstories.com

Indonesian PLN Collects US$1.58B from Issuance of Dual Currency Bonds

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Managemen of PT Perusahaan Listrik Negara - Photo by the Company

JAKARTA (TheInsiderStories) – PT Perusahaan Listrik Negara (PLN), an Indonesian power producer, announced has issued dual currencies bond in US dollar and Euro in this month. The state-owned company issued US$1 billion and EUR500 million (US$575 million), or in total $1.58 billion, to finance the electricity projects of 35,000 megawatts (MW).

In details, for US dollar bond, $500 million has tenors of 10 years and 3 months with an interest equivalent to 5.37 percent while other $500 million with a tenor of 30 years and 3 months with an interest equivalent to 6.25 percent. Then for Eurobond, EUR500 million with a 7-year tenor with an interest equivalent to 2.875 percent.

PLN Finance Director Sarwono in written statement on Tuesday (23/10) claimed that the issuances was quite successful in attracting funds in the midst of fluctuating markets and trade war issues. By successfully expanding the investor base to Europe, PLN also possible withdraw funds from a variety of bond tenors.

Previously, in June, PLN issued Global Medium Term Note (GMTN) Program worth od $5 billion helped by Linklaters. Around $2 billion inaugural drawdown and concurrent cash tender offers.

Shortly after its establishment, PLN issued two series of USD-denominated notes in a US$2 billion drawdown to international investors. Proceeds from this issuance of the notes were used to repurchase for cash certain notes that company had previously issued in three concurrent tender offers.

This GMTN program is also notable because it gives the issuer the flexibility to issue notes with a wide range of terms, including Indonesian Rupiah-denominated and Komodo bonds.

The establishment of the GMTN program included Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Standard Chartered Bank, Standard Chartered Bank (Singapore) Limited and Mandiri Securities Pte. Ltd.Dealers: Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Standard Chartered Bank, Standard Chartered Bank (Singapore) Limited, Mandiri Securities Pte. Ltd., Australia and New Zealand Banking Group Limited, BNP Paribas.

The first drawdown of the Global Medium-Term Note program included Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Mandiri Securities Pte. Ltd., Standard Chartered Bank, PT Bahana Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas as a managers.

Last year, PLN was heavily criticized for inefficiency and accumulating debts totaling $22 billion. These debts raised concerns on the part of Minister of Finance Sri Mulyani Indrawati about company debts and interest payable over the next 30 years exceeding the cash-raising capability of the state-owned enterprise.

Many stakeholders warned that over the long run PLN may suffer cash flow problems because of the mandatory 35,000 MW mega power plant. PLN will need around $10 billion at least for the construction of the 10,000 MW plants and for transmission.

Even so, the CEO Sofyan Basir claimed PLN’S debts were still manageable. Around Rp100 trillion of debt was owed to local creditors, $1.1 billion to the World Bank and Asian Development Bank and the remainder of around Rp186 billion to various foreign creditors.

Eur1: US$1.15

Email: linda.silaen@theinsiderstories.com

Two Indonesia’s Oil dan Gas Production Areas Sold in Auction

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Vice Minister of Energy and Mineral Resources Arcandra Tahar at Insider Network Event at April 23 - Photo by MEMR

JAKARTA (TheInsiderStories) – Indonesian Government’s auction on oil and gas working areas bore few fruits. Two working areas, South Jambi B and Banyumas, sold among six offered in the second stage of 2018 auction, said one senior official government on Monday (22/10).

South Jambi B will be operated by Hongkong Jindi Group. It won a bid for offering US$60 million commitment and $5 million bonus. Meanwhile, Banyumas oil and gas production areas’s bid won by local company PT Minarak Berantas Gas, with $4 million commitment and signature bonus for $500.000.
By this, there are six oil and gas working areas total won in 2018 auction, added four in the first stage. Deputy Minister of Energy and Mineral Resources (EMR), Arcandra Tahar said, Indonesia’s oil and gas production can count on this working areas that just got new operators.
“We expected that the bid winners soon to finish the contract so they can produce sooner. But the most important thing we need is that contractors can increase production and find new oil reserves,” said Tahar.
He continued, Indonesia will also held more auction for four working areas lost in bid, South East Makasar, Andika Bumi, Makasar Strait, and Selat Panjang. The third stage of auction will be announced next week and closed by the end of the year.
As an alternative, government also planned to offer the unsold blocks to state-owned energy producer PT Pertamina. According to the ministry’s Director General of Oil and Gas Djoko Siswanto, Pertamina also stated interest on this blocks, but not yet submitting documents.
“We’ll discuss again, there is still a week time. Verbally, Pertamina mentioned its interest to do joint study. But it (the interest) must be written,” Siswanto said.
Other blocks that are recently in joint study process with Pertamina will also be auctioned in the next stage. So probably, there will be seven working areas production to be offered.
Written by Staff Editor, Email: theinsiderstories@gmail.com

Commonwealth Sell 80% Indonesian Unit to FWD Group for US$426M

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Commonwealth Bank Sell 80% interest in Indonesian PT Commonwealth Life to FWD Group for US$426 Million - Photo by the Company

JAKARTA (TheInsiderStories) – Australia’s Commonwealth Bank (CB) today announced the sale of its 80 percent interest in its Indonesian life insurance business, PT Commonwealth Life (CL), to Hong Kong-based FWD Group for US$426 million, with potential additional payments payable over time, subject to the performance of the distribution partnership.

Under the terms of the partnership, its Indonesian banking business, PT Bank Commonwealth (BC) will continue to earn income on the distribution of life insurance products. As part of the Transaction, BC will enter into a 15-year life insurance distribution partnership with FWD.

The company said, the total amount for the transaction represents a multiple of 3.0x CL’s book value at first half (1H) 2018 and 16.6x CL’s normalised net profit after tax for the twelve months to end of June. Upon completion, the transaction is expected to result in a post-tax gain on sale of approximately $140 million and an increase of 7 basis points to CBA’s Common Equity Tier 1 ratio as at 1H 2018.

The Transaction aligns with CBA’s strategy to focus on its core banking businesses and to create a simpler and better bank and is expected to complete in the 1H of 2019, subject to regulatory approvals in Indonesia.

The company said, today’s announcement follows the completion of the divestment of Sovereign in New Zealand to AIA Group in July 2018. The announced divestments of CommInsure Life in Australia to AIA Group and CB’s 37.5 percent interest in BoComm Life in China to Japan’s Mitsui Sumitomo Insurance are still pending regulatory approvals. These divestments are now expected to complete in the 1H 2019.

BC’s President Director and Executive General Manager Indonesia, Lauren Sulistiawati, said in a written statement: “FWD is a leading pan-Asian insurance group and we are excited to work together to further enhance our life insurance product offerings and service to our customers.”

Established in 1992, CL has a presence in 20 major cities in Indonesia and serves over 400,000 individual and group policyholders. While, FWD Group is the pan-Asian insurance business of investment group, Pacific Century Group and was established in 2013 through the acquisition of ING Groep N.V.’s Hong Kong and Thailand business.

FWD has grown rapidly across Asia, including Indonesia, and is an innovative and dynamic insurer across its key markets. 

Currently, the government has enacted regulation a maximum threshold for foreign ownership of an Indonesian insurance company of 80 percent. Insurance companies that are currently subject to foreign ownership in excess of the 80 percent limit will be exempt from this requirement, provided that their respective existing foreign ownership percentages will amount to the maximum individual cap on foreign ownership of each of the relevant insurers.

If insurance companies fail to comply with the rules, they will be subject to administrative sanctions by Financial Service Agency (FSA) ranging from written warnings to business license revocation.

In practice, since the Asian Financial Crisis of 1998-1999, a number of foreign insurers had assumed ownership positions in domestic insurers in excess of the 80 percent cap under the 1992 Law, as where emergency capital was required to keep their investee companies afloat, they had diluted local partners who had been unable to fund their equity proportions.

This non-compliance with the 1992 law was tolerated and had continued until very recently, with the FSA turning a blind eye to dilutive capital increases by foreign insurers in order to support capital requirements.

Email: linda.silaen@theinsiderstories.com

Equity Crowdfunding Rule for Indonesia’s FinTech Releases This Year

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Financial Technology Services - Photo by SolusiManajemen

BOGOR (TheInsiderStories) – Indonesia’s Financial Services Authority (FSA) will release equity crowdfunding regulation, which can be a source of funding alternative for financial technology (FinTech) start-up companies. The rule-making is targeted to be released this year, a government official said on Monday (23/10).

According to the FSA’s director Luthfy Fuady, by participating in equity crowdfunding, investors may gain dividend and also have rights in shareholders meeting. The regulation stated, people with below Rp500 million (US$34,482.76) annual income only allowed to invest 5 percent of their income in crowdfunding for FinTech company, while others above that could participate to 10 percent.
Moreover, investors must be able to analyze the stocks risk. Considering crowdfunding has some risks such as not getting dividend, un-liquid stocks, share ownership dilution, capital loss, operational failure, and bad information system.
Fuady explained, the equity crowdfunding share purchase is different compared to the recent procedures for Indonesia Stocks Exchange’s listed companies. In crowdfunding, he stated, the share purchase must involve third-party platform.
Furthermore, the company shall inform its funding needs to platform. Then, the platform will seek funding from public, by doing assessment based on request. And until the funding meets company’s target, finances will be kept in the platform, to prevent un-liquidity, said Fuady.
He said, the FSA made the regulation not only for start-up companies, but also for small medium enterprises (SMEs). Fuady clarify, there are regulations required for start-up companies and SMEs to carry out in this crowdfunding.
He urged, the company must be an incorporated company, and not part of other companies or conglomeration. Also, it will not go public, and not a subsidiary of a listed company. Then, the company assets must not be more than Rp10 billion.
Written by Staff Editor, Email: theinsiderstories@gmail.com

Hong Kong’s TNG Fintech Acquires Walletku for Undisclosed Amount

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JAKARTA (TheInsiderStories) – TNG FinTech Group, Hong Kong-based financial technology company, announces the acquisition of Indonesian based PT WalletKu Indompet Indonesia (WalletKu) for undisclosed amount.

As an engaging platform and technology ecosystem in Indonesia, WalletKu offers a range of digital products, including prepaid mobile phones credit top up, bill payments, hotel, airline, and sports ticket bookings and payments, others, which efficiently facilitate the finance cycle in Indonesia and help bridge with overseas financial systems.

It has recruited over 3 million users and achieved average 27 percent monthly compounding growth since January 2018.

“64 percent of Indonesia’s population is unbanked and they take up a significant portion of WalletKu’s user base. The acquisition is a perfect portfolio fit to further strengthen our leading FinTech position in Asia,” says Mr. Alex Kong, Founder and Chairman of TNG in a written statement released on Monday (22/10).

TNG owns and operates its flagship e-wallet application TNG Wallet in Hong Kong, which provides financial inclusion and FinTech services to its users, tapping into the market of 1.2 billion unbanked population in Asia.

After the acquisition, WalletKu will be integrated into “Global E-Wallet Alliance”, an initiative by TNG in 2016, which includes TNG Wallet and 12 member e-wallets in China, Indonesia, the Philippines, Singapore, Malaysia, Thailand, Vietnam, India, Sri Lanka, Bangladesh, Nepal and Pakistan.

Commenting on the deal, Farid MN, CEO of WalletKu says, “This is an outstanding opportunity to enhance our existing suite of digital solutions and supercharge WalletKu’s growth, leveraging TNG’s technology and infrastructure.”

Tri Putra Permadi as founder and COO of Walletku added, “And in the future, we will launch several services, namely Walletku Mart (the most complete groceries store that provides a variety of needs ranging from food, beverages, fresh food, to the needs of household appliances), sales of insurance premiums, sales of books and school uniforms, and electronic money services. or what is called ‘wCash’. ”

Walletku currently has more than 22,000 networks spread throughout Indonesia with a focus on targeting small and medium enterprises. This is because Walletku wants to empower micro, small and medium businesses and make them independent entrepreneurs and increase their income through the My Wallet application.

Since it was officially established in 2017, Walletku has recorded more than 3 million users transacting to date through Walletku merchants, and TNG has recorded a compound annual growth rate of 27 percent.

By putting it in the TNG map, it is hoped that it will further strengthen TNG’s leading position in Asia and My Wallet in Indonesia. E-wallet users who are registered as members can make real-time transfers with each other, as well as instant messaging and P2P calls, allowing social and financial transactions to be combined.

Written by Staff Editor, Email: theinsiderstories@gmail.com

Morning Briefing: Political Camps Stick to Their Narratives as Campaign Heats Up

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Two President and VP Candidates for 2019 General Election - Photo by President Office

JAKARTA (TheInsiderStories) – Good morning. Both political camps dug grounds and stuck to their own narratives in presenting their case to court voters in the next general and president election.

The opposition camp, which has made a political blunder due to its blind faith on criticisms against the government, continued their attack on the lack of economic progress experienced by the common people.

Prabowo Subianto, the opposition’s presidential candidate, said 99 percent of Indonesians are living on the edge. Subianto was not entirely mistaken as he cited a World Bank report that Indonesia’s richest 1 per cent controls more than half of 50 per cent of the nation’s wealth.

However, it was the way that Subianto presented the data and used an angle that serves his political purpose. His criticisms came after the incumbent candidate, President Joko Widodo, made a call to abandon the politics of lies, a thinly-veiled attack on the opposition.

The opposition seem desperate to use any available tools on its criticisms as it faces an uphill battle against the ruling coalition. Lingkaran Survey Indonesia Denny JA, a pollster, said the ruling coalition may secure 60 percent of the vote due to its favorable political momentum, media supports and strong financial backing.

Amid the political tension, yesterday, president Widodo met with Saudi Foreign Ministers and expressed concerns on the death of journalist Jamal Khasshoggi, which has triggered a geopolitical tension in the middle east.

Despite the ongoing tension, the domestic financial market was relatively quiet. The Jakarta Composite Index gained 0.1 per cent at 5,840 with foreign investors net sold equity worth Rp64.5 billion (US$4.45 billion). The Rupiah strengthened to 15,192 per US$1 from 15,221 per US$1.

Market investors would largely stay on the sideline awaiting the outcome of Bank Indonesia’s monetary policy meeting which starts today. Market has expected the central bank will stand pat on its reference seven-day reverse repurchase rate after five hikes so far this year.

Sentiments on the stock market are mixed as investors are anticipating for the release of corporate earnings for the nine month period.

The government’s debt auction will also be on investors’ agenda. The government aimed to raise as much as Rp20 trillion from auction of bond benchmark series and treasury bills.

So far, demand on the debt auction remains robust and the government always raised the maximum amount of proceeds.

From overseas, investors are closely monitoring the development in Italy after the European nation was downgraded by Moody’s Investors Service. As the fourth-largest economy in the eurozone, Italy’s economic issues would raise questions on the future of the European Union, which its stalemate on negotiation a British exit from the grouping also a cause for a global concern.

Oil prices started to see some downside momentum as investors are weighing on between the tight supply condition due to US economic sanctions on Iran and also the slowdown on economic growth.

May you have a profitable day.

US$1: Rp14,500

Written by TIS Intelligence Team

Indonesia’s TPS Food Shareholders Meeting Held Amid Management Spat

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TPS Food Products - Photo by TPS Food

JAKARTA (TheInsiderStories) – Indonesian food producer, PT Tiga Pilar Sejahtera Food Tbk (IDX: AISA), also known TPS Food, holding extraordinary shareholders meeting without board of directors presence on Monday (22/10). The meeting held amid internal conflict between the board commissioners and boar of directors.

Spat between TPS Food board of commissioners and board of directors has ongoing for more than four months.
In the meeting, the shareholders appointed Hengky Koestanto as the new President Director replacing Joko Mogoginta. According to the Corporate Secretary Michael H. Hadylaya, Koestanto was previously the commissioner of the AISA-coded company.
Historically, Koestanto’s grandfather was one of the founders of the company. “So from the historical point of view, capability and integrity, I think the three things were fulfilled from Mr. Henky,” he added.
Hadylaya reported, the shareholders also did not protest or refute. In other words, the shareholders approved the composition of this new board of directors.
Previously, AISA’s directors from Mogoginta’s camp said they would not attend the EGM. They also stated, the EGMS today was invalid and not in accordance with the provisions of the Financial Services Authority (FSA).
Responding to that, Hadylaya affirmed, the EGM was legal and all decisions at the meeting were valid, because they were in accordance with the provisions in force.
“We are legitimate, we hold this in accordance with AISA’s articles of association and FSA’s letter. What we do according to the law applies, as we know the highest forum in the company is the GMS. Let’s respect the shareholders,” he stated.
On Oct. 19, the old management said that the company’s directors and commissioners had received a letter from the FSA number 223/PPM.2/2018. The letter contains the matter of holding the EGM must be subject to the Provisions on Limited Liability Company Law No. 40 of 2007 and FSA Regulation (POJK) number 04/2014.
So, the board of directors of Mogoginta’s camp asked the board of commissioners to cancel the today’s EGM planned. He also appealed to the company’s shareholders, notaries, administrative bureaus, securities, and invitations to not attend the EGM cause they were considered illegal and violated the law.
But, TPS Food‘s commissioners chose to not acknowledge. They considered directors’ seats are empty and has been taken over. Whilst board of directors claimed to still have responsibility in managing the company.
While, the directors threatened to report to FSA and Human Rights and Legal ministry, if the shareholders meeting still held. According to them, the meeting is rated with legal disability because based on law, only directors that have rights to represent company inside and outside court.
Considered still having control of the company, Board of Directors planned to solve the financial problem, and getting new investors, which is unacceptable, pursuant to commissioners.

Since the case of the rice product with Manyuss branded, TPS Food experienced financial problems and made the company fail to pay its obligations. On July 6, its two bondholders PT Sinarmas Aset Management (SAM) and PT Asuransi Jiwa Sinarmas (AJM) MSIG submitted Request for Suspension of Debt Payment Obligations to Central Jakarta Commercial Court.

The lawsuit’s effort was filed to collect the 2013 TPS Food I Bond’s paying interest. SAM holds TPS Food’s bonds worth Rp21.15 billion (US$1.45 million), and TPS Food Sukuk Ijarah worth Rp296 billion. While AJJ MSIG has 2013 Food I TPS Bonds worth Rp100 billion, and 2013 TPS Food II Sukuk Ijarah worth Rp200 billion.

Both types of securities will actually mature due to principal repayment on April 5, 2019. Where interest payments will be paid each semester from January 5, 2018.

In the bondholders meeting on April 16, TPS Food requested a postponement of payment. However, the company still did not fulfill its obligations. Therefore, the two bondholders proposal of the bankruptcy lawsuit.

“The company is trying to restructure the 2013 TPS Food ijarah bonds and Sukuk,” wrote Mogoginta to the Indonesia Stock Exchange (IDX), on July 5. Since then, the IDX has temporarily suspended the trading of TPS Food shares.

Email: linda.silaen@theinsiderstories.com

Hengky Koestanto Assigns as TPS Food New President Director

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New President Director of PT Tiga Pilar Sejahtera Food Tbk Hengky Koestanto - Photo TPS Food

JAKARTA (TheInsiderStories) – Hengky Koestanto, former of PT Tiga Pilar Sejahtera Food Tbk (IDX: AISA) commissioner, assigned as a new President Director. The company claimed that the decision met with no protest from the shareholders at the extraordinary meeting on Monday (22/10).

The new-elect president director is considered having the needed experience in leading and even owning a company.

“Historically, capability, and integrity, I think those three are fulfilled,” said TPS Food Coorporate Secretary Michael Hadylaya after the shareholders meeting.

Koestanto, 41 years old, was Commissioner of TPS Food since 2011. The University of  Minnesota Twin Cities in Bio-system Science and Agricultural Engineering graduate, started his career in Tiga Pilar Sejahtera as Business Development Manager in 1999.

Then Koestanto held some important positions such as Director of PT Poly Meditra Indonesia for six years until 2012 and Director of PT Tiga Pilar Sejahtera, during 2000-2013.

Here’s the list of TPS Food Board of Directors and Board of Commissioners, decided in extraordinary shareholders meeting:

President Director: Hengky Koestanto
Director and Independent Director: Charlie Dungga
President Commissioner and Independent Commissioner: Yulie Sudargo
Commissioner: Jaka Prasetya

Earlier, the ex-Directors threatened to report to Financial Service Agency (FSA) and Human Rights and Legal Ministry, if the extraordinary shareholders meeting still held. According to them, the meeting is rated with legal disability because based on law, only directors that have rights to represent company inside and outside court. They claimed to still have responsibility in managing the company.

On the other hand, TPS Food Board of Commissioners chose to not acknowledge. They considered Directors’ seats are empty since July 27th and has been taken over.

Commissioners also see the extraordinary shareholders meeting was not prohibited by FSA, Indonesia Stocks Exchange, and Central Securities Depository.

Spat between TPS Food Board of Commissioners and former Board of Directors has been going on for more than four months.

Written by Staff Editor, Email: theinsiderstories@gmail.com

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