COURT RULINGS IN DERIVATIVE TRANSACTION CASES IN INDONESIA

Several cases examined and decided by the court regarding derivative transactions gave the following decisions: Declaring derivative agreements null and void. South Jakarta District Court Decision No. 24/Pdt.G/2009/PN.Jkt.Sel between PT Permata Hijau Sawit and Citibank. N.A. Jakarta branch and Central Jakarta District Court Decision No. 81/Pdt.G/2009/PN.Jkt.Pst between PT Nubika Jaya and Standard Chartered Bank stated that the bank committed an unlawful act because it violated its legal obligation to provide clear, complete and correct information about derivative transactions to customers. Banks are also accused of violating customers’ subjective rights in obtaining clear, complete and correct information about derivative transactions.

However, in the case of Hardi Wijaya against Deutsche Bank AG Jakarta, the Supreme Court rejected the appeal filed by Hardi Wijaya’s lawyer and upheld the Judex Facti Decision (Decision No. 432/PDT/2005/PT.DKI jo. Decision No. 315/Pdt.G/2004/ PN.Jkt.Pst) through Supreme Court Decision No. 2550K/Pdt/2006 dated July 4 2007. The arguments used by the Cassation Petitioner include that it cannot be proven that there were derivative, spot and forward transactions based on the Cassation Petitioner’s instructions/commands over the telephone which are not supported by evidence of recorded instructions even though they are in accordance with SKBI No. . 28/119/Kep/Dir. dated 29 December 1995, derivative transactions must be carried out based on agreements and contracts in written form.

Source:

Dr. H. Ahmad Zaenal Fanani, SHI, MSi, Varia Peradilan No.389, April 2018.

Regards,

Fredrik J. Pinakunary