Jakarta, CNBC Indonesia – The Ministry of Investment/BKPM has opened its voice regarding cases of alleged legal violations committed by the J&T Express courier service company in Indonesia.

Deputy for Investment Climate Development at the Ministry of Investment/BKPM, Yuliot Tanjung, said that J&T was conducting an in-depth investigation into the nominees.

“In logistics and courier practices there is an agency and cooperation system, but not in the form of share ownership,” he told CNBC Indonesia via short message, Tuesday (31/10/2023).

This logistics service from Indonesia has officially listed its initial shares or IPO on the Hong Kong stock exchange on Friday (27/10)

They started trading at 11.84 HKD on Friday morning, after opening at 12 HKD.

J&T Express raised revenues from the IPO worth US$ 500 million or around Rp. 7.92 trillion. This will be the largest IPO on the Hong Kong stock exchange throughout 2023.

However, what is an anomaly here is that companies face the risk of violating regulations regarding the negative investment list (DNI). The applicable DNI regulations regarding foreign entity ownership of companies operating in the courier sector are limited to 49%.

J&T Global, in the prospectus, explains how they will register PT Global Jet Express (the name of the J&T Indonesia company) as a domestic capital company (PMDN).

“We conduct our business through affiliated entities in Indonesia, parent companies in Indonesia and their subsidiaries. We have contracts with parent companies in Indonesia, shareholders in Indonesia, both corporations and individuals,” wrote J&T’s prospectus.

The agreement gives J&T Global to have effective control over affiliated consolidated entities in Indonesia, obtain all economic benefits from Indonesia, and have the option to purchase all shares in the company in Indonesia if Indonesian law allows.

At the Directorate General of General Legal Administration (AHU) of the Ministry of Law and Human Rights, PT Global Jet Express is registered as a company with Domestic Investment (PMDN) status.

However, in J&T’s prospectus, PT Global Jet Express is stated to be 100 percent owned by Winner Star Holding Ltd. Winner Star was then owned by Onwing GLobal Limited, which was owned by J& Global Express Limited based in the Cayman Islands. The controlling shareholder of J&T Global Express is Jet Jie Lie, founder of J&T.

[Gambas:Video CNBC]

(fab/fab)