Kuala Lumpur Kepong Bhd (KLK) said its wholly-owned Indonesian subsidiary, PT Perindustrian Sawit Synergi (PT PSS), has reached an amicable settlement with PT Pertagas Niaga (PT GN), bringing their arbitration proceedings to a close.
KLK said PT PSS received the arbitral award from the Indonesian National Arbitration Board (BANI) on the late evening of Oct 1. The award was dated Sept 30.
The dispute arose from the termination of a gas supply agreement between PT PSS and PT GN. While arbitration was ongoing, both parties also entered mediation aimed at reaching a mutually acceptable resolution.
KLK said the resulting arbitral award reflects a consensual commercial settlement and does not constitute an admission of liability, fault or wrongdoing by either party. It also does not represent a determination on the merits of their respective claims and counterclaims.
The terms of the award remain confidential under Indonesian law and BANI rules.
KLK said the award is final and binding, bringing the arbitration proceedings to an end.
The group added that the settlement is not expected to have any material impact on its earnings, net assets or gearing for the financial year ended Sept 30, 2026.
