MSU Calls for Respect for Law After Court Decides in Its Favor

Supervisors monitor workers at Meikarta's construction site in Cikarang, West Java. (JG Photo/Yudhi Sukma Wijaya)

By : Jakarta Globe | on 4:25 PM July 05, 2018
Category : Business, Corporate News

Jakarta. The Central Jakarta Court on Thursday (05/07) rejected a motion for a suspension of a debt obligation, or PKPU, filed by Relys Trans Logistic, Imperia Cipta Kreasi and Kertas Putih Indonesia as creditors, against Lippo Group's Mahkota Sentosa Utama, a subsidiary that develops Meikarta, its flagship property project.

Mahkota Sentosa (MSU) welcomed the decision and asked all parties involved to respect the law, president director Reza Chatab said in a statement.

PKPU is often used by creditors against their common debtor, should they think that he may fail to fulfill his obligation. It was filed by the plaintiffs in May against MSU, as they alleged the company did not pay its advertising bills.

Reza said there was no contract between the parties that would create a debt relation between MSU and the plaintiffs, as the documents filed by them were fictitious, fraudulent, or legally flawed, and were not legitimate bills.

The plaintiffs are under police investigation, as MSU earlier reported suspected fraud and embezzlement, based on fictitious bills they had issued.

Police investigators found various irregularities in the bills and documents from Relys Trans Logistic, Imperia Cipta Kreasi and Kertas Putih Indonesia, even before these companies applied for the PKPU.

Based on that, MSU said that the case was actually not about debts, but about fraud, forgery, embezzlement and illegal acts. MSU will seek criminal and civil proceedings against the companies, Reza said.

MSU said that it deeply appreciates the court's decision, which considered not only the principle of justice and legal certainty, but also the ongoing investigation by police in Bekasi and Jakarta. The police have secured search and seizure warrants from the East Jakarta District Court and South Jakarta District Court to continue the probe, Reza said.

MSU will honor the rights of vendors who have complete and legitimate documents, he added.

"Their rights must be guaranteed. Buyers should not be afraid, their rights will be also guaranteed. The unit handover is planned to be on schedule," Reza said.

The construction of Meikarta is progressing fast, he said. Currently, thousands of workers are building 14 blocks — consisting of 28 apartment towers for 15,000 apartment units — which will be handed over in February next year.

The Jakarta Globe is affiliated with the Lippo Group.

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