INA and Silk Road Fund Win Arbitration Against Kimia Farma

Indonesia Investment Authority (INA) and Silk Road Fund (SRF) have won an arbitration dispute against PT Kimia Farma Tbk (KAEF) and PT Kimia Farma Apotek (KFA) concerning Rp 2.2 trillion in investment funds and fees. The Singapore International Arbitration Center (SIAC) ruled in favor of INA and SRF in mid-June 2026, nearly two years after the dispute was filed on October 23, 2024.

The core of the dispute lies in misstated financial reports from KFA and PT Kimia Farma Diagnostik (KFD) for 2021 and 2022. As guarantors, PT Bio Farma (Persero) and KAEF are now jointly liable for returning approximately Rp 2.2 trillion to INA and SRF.

INA's VP of Communication, Putri Dianita Ruswaldi, declined to comment on the arbitration ruling. Attempts to get a response from KAEF's President Director Djagad Prakasa Dwialam and Bio Farma's Corporate Communications Yuni Miyansari were unsuccessful.

Previously, Tempo reported on February 5, 2026, that the Supreme Audit Agency (BPK) found PT Bio Farma (Persero) potentially liable for returning funds due to these misstatements. The BPK's findings were detailed in a compliance audit report covering 2022 to the first half of 2024.

In June 2024, INA's subsidiary PT Akar Investasi Indonesia (AII) and SRF's entity CIZJ Limited sent a letter to Kimia Farma, citing violations of a conditional share subscription and purchase agreement signed in 2022. These misstatements potentially led INA and SRF to make flawed investment decisions on November 13, 2022, through a rights issue, divestment, and mandatory convertible bond issuance to KAEF and KFA.

Beyond the civil dispute, the Indonesian Attorney General's Office has been investigating alleged corruption related to these investment funds since early 2026. A March 2025 investigation order targeted alleged corruption totaling Rp 1.86 trillion. Anang Supriatna, Head of the Attorney General's Office for Legal Information, stated in February 2026 that the investigation was ongoing. In response to the corruption probe, KAEF's Acting Director of Finance & Risk Management, Disril Revolin Putra, stated that KAEF complies with all applicable laws and regulations.