KUALA LUMPUR: PT Direct Vision (PTDV) of Indonesia has served a statement of claim for US$20 billion (RM60.8 billion) against Measat Broadcast Network Systems Sdn Bhd (MBNS) and its parent, Astro Malaysia Holdings Bhd, for “immaterial loss” resulting from the 2008 dispute over the proposed DTH pay TV business in Indonesia.

In an announcement to Bursa Malaysia yesterday, Astro said the Indonesian statement of claim was served on MBNS when it attended a mediation hearing on April 24. A statement of claim is an official court document completed by a party which thinks it is owed money.

“The civil suit is brought by PTDV for damages for an unlawful act (a tort) alleged to have been committed by Astro All Asia Networks Ltd, Astro Overseas Ltd and certain of their affiliated companies (which are not part of the AMH group), certain individuals as well as MBNS arising from a dispute that arose in 2008 over a proposed DTH pay TV business in Indonesia,” Astro said.

Astro said it has been advised by Indonesian lawyers that PTDV’s claim in a south Jakarta district court against MBNS is not supported with valid grounds and the quantum of damages sought is unjustifiable.

The Malaysian pay TV operator said PTDV’s claim is linked to the arbitration proceedings on the proposed Indonesian joint venture project, in which the Singapore International Arbitration Centre (SIAC) has ruled in favour of MBNS and Astro.

The SIAC has ruled that PTDV must pay MNBS and Astro approximately US$303 million, and the
ruling is final and binding on PTDV. Astro said PTDV did not apply to set aside or challenge the enforceability of the awards made in Singapore.

However, another company, PT First Media, applied to refuse the enforcement of the SIAC awards against PTDV in Singapore. The High Court of Singapore, in a judgment released to the parties on Oct 23, 2012, confirmed the enforceability of the SIAC Awards.
PT First Media appealed against the Singapore High Court’s  judgment in  the Court of Appeal from April 10 to 12 this year.

The Singapore Court of Appeal has reserved judgment.Astro’s pay-TV partnership with the Lippo group of Indonesia was first announced in 2005, using Lippo unit PTDV’s multimedia broadcast licence. The partnership ran into heavy resistance and did not last beyond 2008. The two parties then decided to arbitrate the dispute in Singapore.

This article first appeared in The Edge Financial Daily, on April 26, 2013.