Info and comment about Indonesian mogul Hary Tanoesoedibjo and his MNC media conglomerate are flooding social media and news platforms in Indonesia as separate long- and longer-running cases resurface, and speculation runs rampant about plunges in MNC Group company share prices.

Somewhere in the middle of robust social media activity about the how, the why and the karma, financial voices say the share-price crash is the result of the Indonesia Stock Exchange’s adjusted trading price rules, which came into effect at the end of September. Others aren’t so sure, citing a 14.55% drop in MNCN on 24 September – four days before the new floor took effect and sent three of the companies (BABP, BCAP and KPIG) down 14% and MSIN down 10%.    

The longer-running of the two legal fights, dating back to 1999, involves Jusuf Hamka, whose toll-road company CMNP bought US$28 million of negotiable certificates of deposit from Bank Unibank, arranged by MNC Asia Holding. 

The certificates could not be cashed and in April this year the Central Jakarta District Court held Tanoe and MNC Asia Holding jointly liable. The court ordered Tanoe/MNC to pay the US$28 million plus 6% annual interest from 2002 plus Rp50 billion (approx US$2.8 million) in non-material damages for a total of about Rp531 billion (approx US$29.7 million) before interest. MNC appealed to the Jakarta High Court in May. 

The fight got even nastaier late last month, when Hamka accused Tanoe of fraud, claimed trillions of rupiah in unpaid VAT, and used a derogatory nickname for MNC’s bank. 

Tanoe rejected the accusations, said the nickname damaged public trust in the bank, and said he filed a police report on 30 September accusing Hamka of defamation. Hamka replied that he was simply warning shareholders.

The second case involves an MNC Bank branch manager who alleges assault by Tanoe in July. The woman filed a police report and took her allegations – including being slapped, having a shoe put into her mouth and being forced to remove items of clothing – to social media. MNC said the accusations were slander and an attempt to divert attention from an investigation into her for alleged theft of bank funds.

All this unfolded as MNC’s pay-TV company, MNC Sky Vision (MSKY), faces a separate petition for suspension of debt payment obligations filed on 22 September by Ascot Group Holdings at the Central Jakarta Commercial Court. 

The claim is Rp73.47 billion (approx US$4.1 million) including interest, according to MSKY’s filing to the Indonesia Stock Exchange. The first hearing was set for 1 October; the outcome of the hearing had not been confirmed at press time. 

MSKY, which reported first-half revenue down 40.4% to Rp120.04 billion (approx US$6.7 million) and a net loss of Rp71.22 billion (approx US$4 million), said the claim was below 20% of its equity and would not materially affect operations.