Indonesian Government Assets in France Face Seizure Risk

TEMPO.CO, Jakarta - Indonesian government assets in France are at risk of being seized after the Indonesian Ministry of Defense lost a dispute against Navayo International AG. Coordinating Minister for Legal, Human Rights, Immigration, and Corrections Yusril Ihza Mahendra stated that the government has filed an appeal against the decision.

"We hope the court can consider the various facts and overturn the previous decision," Yusril said during a meeting with French Minister of Justice Grald Darmanin, as quoted from Antara, June 17, 2025.

To face this appeal hearing, the government, through the Embassy of the Republic of Indonesia in Paris, has appointed an experienced French lawyer to handle cases involving the seizure of state assets.

Case Background

The case began in 2016 when the Ministry of Defense signed a contract with Navayo International AG and other foreign private parties for the procurement of Defense Communication Satellites (Satkomhan). The contract stated that any disputes would be resolved in a Singaporean court.

Navayo then filed an arbitration lawsuit in Singapore, which resulted in Indonesia being required to pay a certain amount in compensation. The issue persisted until 2022, prompting the European company to file for the seizure of Indonesian government assets in Paris.

"This issue is a serious matter for us because we lost in the arbitration of another country, and we must respect the court's decision, even though we know there are aspects that could strongly hinder the execution of this court decision," Yusril said, as quoted from Antara, March 20, 2025.

In 2024, the French court authorized Navayo to seize the rights and properties of the Indonesian government in Paris. According to Yusril, one of the assets includes residential houses of Indonesian diplomatic officials.

The Indonesian government has attempted to hinder the execution through diplomacy. Diplomacy was conducted at the end of March 2025 in a meeting with the Organization for Economic Cooperation and Development (OECD) as well as discussions with the French Minister of Justice.

Navayo International AG Accused of Breach of Contract

Navayo International AG is accused of breaching the Defense Satellite project. Navayo is said to have only completed work worth Rp1.9 billion out of the billing of US$16 million to the Ministry of Defense.

Domestically, the Attorney General's Office has taken legal action against parties involved in corruption related to the satellite procurement. However, Navayo has consistently ignored summons from the Attorney General's Office.

"Navayo has been summoned by the Attorney General's Office several times but has not shown up for questioning as a suspect in this case," Yusril said.

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