JAKARTA - The Indonesian Stock Exchange (IDX) temporarily suspends trading of shares of PT Mitra Pemuda Tbk (MTRA) in its inaugural session today (17/11). It was related to the bankruptcy verdict from the Central Jakarta District Court on CNQC-MTRA JO, a joint operation company with Qingjian International (South Pacific) Group Development, last week (9/11).
"We can reveal that the Joint Operation of PT Mitra Pemuda Tbk and Qingjian International (South Pacific) Group Development (CNQC-MTRA-JO) has been declared bankrupt by the Central Jakarta District Court on November 9, 2020," quoted from the IDX disclosure of information signed by Adi Pratomo Aryanto, Head of the IDX Company Assessment Division I and Irvan Susandy, Head of the IDX Trade Regulation and Operations Division. One of the reasons for the termination of the MTRA share transaction was the report on its legal problems at the Central Jakarta Commercial Court.
CNQC-MTRA JO is a joint operation formed to work on a building construction project in Bekasi, owned by PT Logos Indonesia Bekasi One (LIBO). As the main contractor, this company subcontracted electrical and plumbing work to PT Grama Bazita (GB) on the recommendation of LIBO.
GB only completed 77.99% of the project within the targeted time from August 2018 to August 2019. Due to the delay in carrying out the project, CNQC-MTRA JO lost IDR 75.06 billion and held GB accountable by submitting legal remedies to the Indonesian National Arbitration Board. At the same time, GB submitted an application for Postponement of Debt Payment Obligations (PKPU). (LK/VA)