Keppel Corp’s subsidiary in Indonesia is sued by an individual over land ownership rights where the International Financial Centre Jakarta Tower 2 building complex is sited.
According to Keppel Corp in an SGX filing on Feb 14, one Raden Saleh Abdul Malik claims that land plots with a total area of some 17,000 sqm belongs to him and not PT Kepland Investama.
Raden is suing for compensation amounting to IDR1.72 trillion ($161.5 million) plus foreclosure of the disputed land plots.
Kepland, the subsidiary, denies the claim by Raden and will “vigorously defend” the action.
According to Keppel Corp, Kepland acquired the plots back in Dec 2000 and its land certificates, under Indonesian Agrarian Law, are the “strongest proof of ownership”.
“In any event, the claimant is time-barred from challenging the certificates as proof of land ownership,” states Keppel, adding that his claim premised on his possession of a document known as a “girik”, which under the Indonesian Agrarian Law, is not considered proof of land ownership.
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Kepland will apply to strike out the claim.
Keppel Corp shares closed on Feb 14 at $6.04, down 0.33% for the day but up 16.83% year to date.
