Jakarta, 2024. Our firm, representing a palm oil plantation company, has successfully won its claim to invalidate a restrain by the Defendant, namely, the Minister of Environment and Forestry over its forest area release license on an appeal stage.

The main claim by the Claimant, our client, is that the Defendant has violated the laws and regulations and the good governance principles e.g., legal certainty and prudent principles. The Claimant argued in one of its arguments that the Defendant was not authorized to issue such restrain over the Claimant’s forest area release license. After the forest area had been released, the authority vests to the local government, Minister of Agrarian and Spatial Planning, and the Minister of Agriculture, since the main business of the Claimant is on plantation.

The first stage court has however declined the Claimant’s claim by considering that the Defendant has complied with the prevailing laws and regulations and no good governance principles have been violated. On an appeal level, the high judges agreed with the Claimant and considered that the Defendant was no longer authorized to do any action in relation to the released forest area. Further, the high judges argued, since no authority, the previously-issued restrain license by the Defendant should be invalidated and considered as having never been issued. This appeal decision is currently being applied for cassation.

Aspired to resolve disputes, Leks&Co is recommended on commercial dispute resolution by Legal500, asialaw, and Benchmark Litigation.

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