Successfully Representing a State-Owned Enterprise in a Pension Insurance Restructuring Dispute Valued at Over US$100 Million
We are delighted to share another significant achievement of UMBRA’s Litigation & Alternative Dispute Resolution Team — this time in successfully representing a prominent Indonesian state-owned enterprise (SOE) in a high-stakes litigation brought by a foundation established by the defendant’s pensioners.
The claim, valued at more than US$100 million, arose from the restructuring of the company’s pension insurance contract, a program implemented as part of broader financial recovery and regulatory compliance measures, stemming from a financial crisis experienced by an insurance company that had a systemic impact on many SOEs, including our client. The plaintiff sought to challenge the validity of the restructuring, arguing that it adversely affected their rights.
Acting as counsel to the SOE (defendant), our team successfully defended the company against the plaintiff’s claims. This victory may also set a precedent for other SOEs that have experienced similar events. This case was particularly complex, given its intertwining of insurance regulatory framework and sensitive social considerations involving nearly a thousand of retired employees.
Our arguments highlighted the absence of the plaintiff’s legal standing, the plaintiff’s failure to include necessary parties in the claim, the ambiguity and obscurity of the claims submitted, the legal soundness of the insurance restructuring process and its conformity with the insurance regulations issued by the Indonesian Financial Services Authority, and the support of relevant stakeholders, including regulators and the government.
This remarkable result stands as a testament to the strategic litigation skills and unwavering dedication of our accomplished team, led by Melati Siregar and supported by Varial Ashari, Reandy Summa Justitio, Nathasya Nauli Nainggolan, and Ariq Nitipradja.
We extend our heartfelt gratitude to our client for entrusting us with this pivotal matter. Congratulations to the entire team and our client on this extraordinary outcome!
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