January 17, 2021

Merrill Lynch Expects Legal Certainty

JAKARTA – Following the decision of the Supreme Court rejected an appeal by Merrill Lynch International Bank Ltd (MLIB) and PT Merrill Lynch Indonesia (MLINDO), two companies that lawyer Frans Hendra Winata confirmed it has filed a judicial review (PK) to the Supreme Court.

“While we are disappointed with the Supreme Court decision, but we appreciate the dissenting opinion of one member of the panel of the Supreme Court that Syamsul Ma’arif that Merrill Lynch found not guilty of an unlawful act in the case against Prem,” said Frank, in Jakarta .

Moreover, he continued, MLINDO definitely not the parties involved in the transaction in Singapore to be the beginning of the dispute. He then pointed to the Singapore High Court decision that ruled that the Renaissance has acknowledged the existence of the debt and Prem had committed fraud.

An important point in filing PK is a decision of the Central Jakarta District Court in 2010 stating Prem lose. In this ruling the judge rejected a lawsuit alleging Prem defamation arising from complaints MLIB to Bapepam-LK, MLINDO involvement in the defamation and illegal banking practices.

“Central Jakarta District Court’s decision has also been strengthened by the Jakarta High Court,” said Frans continued.

For your information, a legal dispute began when in June 2008, the owner and director of the sole of Renaissance Capital Management Investment Pte Ltd Prem Ramchand Harjani ordered Merrill Lynch, Pierce, Fenner & Smith (MLPFS) through MLIB to purchase 120 million shares of PT Triwira Insanlestari (PTTI) . The purchase is valued at approximately USD14, 3 million.

Frans said, Prem verbally promised that he would pay cash on the settlement date of June 26, 2008. In fact, both Prem and Renaissance never transfer the required funds on the settlement date of the transaction.

Finally MLPFS forced to use their right listed in the contract to liquidate the account Renaissance in MLPFS, including through the sale of shares PTTI. But all these measures still leaves a shortfall of USD9, 4 million so MLPFS then sued in the courts in Singapore in November 2008 to acquire the remaining losses earlier.

In August 2010, the Singapore High Court ruled that Prem had committed fraud and the Renaissance has acknowledged his debt. Both were ordered to pay damages of $ 9.4 million plus interest to MLPFS.

Interestingly, prior to the ruling PT Singapore was out, Prem has sued MLIB and MLINDO the South Jakarta District Court on tort and defamation. South Jakarta District Court ruling came out in 2009 and sentenced MLIB and MLINDO pay compensation amounting to Rp251 billion. The decision was upheld in the High Court and the Supreme Court of Indonesia.

Reportedly, the Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) has received reports of PT Merrill Lynch Indonesia that they ask for review (PK) against the decision of the Supreme Court (MA). Unfortunately, when confirmed, Head of Legal and Legislation Bapepam-LK Simbolon Robinson could not be reached. Several times contacted via phone, Robinson did not answer the call.

In fact, the name of Prem Harjani is not foreign to the business world. Previously, the company had reported Prem that Renaissance had a problem with the PT Danareksa. Cases involving himself with Danareksa also similar to the case at Merrill Lynch. Similarly Premlainnya company, PT Ryane couture, mentioned never had any problems with loans worth Rp 3.5 billion from Dapenma Pamsi (Pension Fund Water Supply Indonesia).