In response to certain news spread in the Indonesian Media, available in newspaper, electronic or even social media, Sinomart KTS development Ltd (“Sinomart”) hereby conducts a press release in 9th of March 2020 at Sudirman Room, DoubleTree by Hilton Hotel, Jakarta. The press release, led by our Managing Partner, Mr. E. L. Sajogo, S.H., MCIArb and our firm's partner, Mr. Johnson Panjaitan, S.H., was long awaited by the media in Indonesia in regards to clarify how the oil storage development project by PT West Point Terminal located in Janda Berhias Island, Batam was delayed even though Sinomart has secured the lease over the project land for 50 (fifty) years.
Sinomart is fully owned subsidiary of Sinopec Kantons Holdings Ltd. ("Sinopec Group"), which currently ranked as the biggest oil and petrochemical company in the world, with revenue over US$377 billion.1 The investment of Sinopec Group through Sinomart in Indonesia is worth US$ 841 million. At the press release, Sinomart, as the 95% shares owner of PT West Point Terminal, elaborated the reason behind the postponed investment was originally from how PT Mas Capital Trust, as the 5% shares owner, together with PT Batam Sentralindo, have conducted series of systematic actions which delay PT West Point Terminal to fully operate. Actions such as ungrounded lawsuits and police reports, have been initiated by PT Mas Capital Trust and PT Batam Sentralindo in order to reach the goal to obstruct the foreign investment made by Sinomart. An arbitration claim has also been requested which ended with a final award which favored Sinomart and PT West Point Terminal.
During the press release, our managing partner reiterates Sinomart's good intention to invest in Indonesia while relying on the fairness and support of the Indonesian Government, specifically in gaining full legal certainty, legal protection in the enforcement of international arbitration awards, and the fair and justifiable treatment for investor with a good faith, in order to continue their projects in Indonesia.
For further inquiries and assistance relating to foreign investment, do not hesitate to contact our associate specializing in foreign investment law, Mr. Marvin Mahendra ([email protected] or [email protected])
1 'The Top 10 Oil & Gas Companies in the World: 2019', Global Oil and Gas Intelligence, 5 January 2020, Accessed 23 March 2020, (www.oilandgasiq.com).