We are pleased to share another success of our Litigation & Alternative Dispute Resolution team at the Financial Services Sector Alternative Dispute Resolution Institution (Lembaga Alternatif Penyelesaian Sengketa Sektor Jasa Keuangan / LAPS SJK)! Our team successfully represented the Indonesian branch of a multinational securities company as the claimant in two parallel securities arbitrations administered by the LAPS SJK. The two tribunals granted our claim for damages and dismissed the respondents’ arguments.

The arbitrations were brought against the client’s customers over the customers’ failure to settle outstanding payments for stock transactions valuing close to IDR45 billion. The case concerned transactions made in multiple margin and regular brokerage accounts, and also centered around the Indonesian authorities’ seizure of the customers’ collateral stocks in connection with a major financial scandal in Indonesia, which the customers argue to be a force majeure event.

The team succeeded in arguing that the seizure of the customers’ collateral stocks does not exempt them from their payment obligation and that the customers must reimburse the client for payments made to settle the customers’ transactions. The two tribunals ruled that the client is entitled to the full payment of amounts claimed up to the time of the seizure.

Our team was led by Melati Siregar with the support of Nikki Krisadtyo and Ramadinan Saptara. We would like to thank the client for entrusting us with handling this case.

Congratulations to the team and the client!

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