PT Asean Aceh Fertilizer Finally Liquidated

The State Ministry for State-owned Enterprises finally liquidates PT Asean Aceh Fertilizer (AAF) after a long deliberation in the House.
The measure is taken after the Constitutional Court lowers the status of AAF as a non-state-owned enterprise.
Secretary to the State Minister for State-owned Enterprise Muhammad Said Didu informed the liquidating team to handle AAF had been established.
AAF shares are controlled by Indonesia (60%), Malaysia (13%), the Philippine (13%), Thailand (13%), and Singapore (1%).
The delay in AAF liquidation since September 2005, had indirectly caused PT Pupuk Sriwidjaja to bear an additional cost of IDR100 billion to maintain the company's assets.
The liquidation of AAF had actually been established at the company's shareholders general meeting on September 17, 2005, after the Lhokseumawe-based company could not operate following ExxonMobil Oil Indonesia Inc's decision to put its gas supply to an end since August 2003.
The liquidation was delayed because the House wanted the liquidation to have a government regulation (PP) as its legal umbrella. In addition, there have been differences in perceptions between the House and the government over whether AAF is a state-owned enterprise or not.
State Minister for State-owned Enterprises Sofyan A. Djalil rejected to acknowledge AAF as a state-owned enterprise since several regulations, such as PP No. 6/1979, the Minister of Finance Decree No. 151/ KMK.01/1979, and AAF Statute state that a 60% stake in AAF is controlled by PT Pupuk Sriwidjaja (Pusri), not by the state.
On that ground, the liquidation of AAF didn't need a PP and was sufficient to refer only to the Limited Company Law. The State Ministry for State-owned Enterprises later brought the issue to the Constitutional Court after it failed to reach an agreement with the House.
Since AAF stopped operation in August 2003, the company has suffered from US$7.1 billion worth of losses.