Keppel unit faces civil claim of $160m over ownership of Jakarta land

SINGAPORE (THE BUSINESS TIMES) - Keppel Corporation said on Monday (Feb 14) that a wholly-owned subsidiary of Keppel Land, PT Kepland Investama, is in a civil action over ownership rights for land plots in Jakarta.

The land plots form part of the site on which the International Financial Centre Jakarta Tower 2 building complex is situated.

In a bourse filing, Keppel said an individual, Raden Saleh Abdul Malik, has commenced civil action against PT Kepland and others, claiming he is the legal owner of the land plots spanning 17,000 square metres.

He is seeking a declaration that he is the legal owner of the land plots, compensation of 1.72 trillion rupiah (S$160 million) and foreclosure of the disputed land plots.

"PT Kepland denies these allegations and will vigorously defend the action," Keppel Corp said, adding that PT Kepland acquired the ownership rights to the land in December 2000, and holds the land certificates to the plots.

It noted that PT Kepland's Indonesian legal adviser has said that these land certificates are the strongest proof of ownership in accordance with Indonesian Agrarian Law.

The individual's claim, meanwhile, is premised on the possession of a document known as a "girik", which is not considered proof of land ownership under Indonesian Agarian Law, Keppel Corp added.

PT Kepland will be taking out an application to summarily dismiss the claim.

Keppel Corp shares closed at $6.04 on Monday, down 0.3 per cent, before the announcement.