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

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.

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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.