PT Crown Pacific Abadi After Supreme Court Ruling: Chronology, Economic Impact, and Legal Analysis

 

CNEWS, Jayapura, September 27, 2025 – PT Crown Pacific Abadi (CPA) held a press conference at Swiss-Belhotel Jayapura to restore the company’s reputation following the Supreme Court’s final ruling in a high-profile corporate crime case related to alleged illegal timber transport.

Chronology of the Case

The case began on March 13, 2024, when a report from Navy personnel accused CPA of using falsified documents. A day later, forestry investigators imposed police lines on the company’s timber stock without verifying documents or coordinating with the supervisory division of the Civil Service Investigators (Korwas PPNS). Authorities seized 32 cubic meters of processed timber that had been transported a day earlier, on March 12, 2024, from the company’s industry site to the TPKO facility.

CPA challenged the seizure through a pretrial motion. In Decision No. 4/Pid.Pra/2024/PN Jap, the Jayapura District Court ruled the seizure unlawful and ordered the return of the evidence. Despite this, forestry investigators repeated the seizure, and the case proceeded to trial under Case No. 309/Pid.Sus LHL/2024/PN Jap.

Prosecutors charged CPA under alternative indictments:

• Article 83 (4) (b) jo. Article 12 (e) of Law No. 18/2013 on the Prevention and Eradication of Forest Destruction jo. Article 37 of Law No. 6/2023.
• Article 88 (2) (a, h) jo. Article 16 of Law No. 18/2013 jo. Article 37 of Law No. 6/2023.

Economic and Business Impact

The legal battle inflicted serious damage on CPA’s operations. The seizure of export-ready timber halted distribution, disrupted contracts, and eroded investor confidence. Several business partners withdrew, triggering a sharp decline in productivity over the past year.

In addition, more than 4,000 cubic meters of timber deteriorated in quality while under state custody, adding to the company’s material losses. Economists warn that the case has sent a negative signal to investors in Papua, particularly in the forestry sector, where legal certainty is critical to sustaining business.

Legal Analysis: Due Process vs. Abuse of Power

The Jayapura District Court’s pretrial ruling highlighted procedural flaws by forestry investigators. Under Article 38 of the Criminal Procedure Code (KUHAP), any seizure must be carried out with a valid warrant and accompanied by an official record.

The decision to repeat the seizure after the pretrial ruling has been widely criticized as an abuse of authority. Meanwhile, the prosecution’s use of alternative charges raised concerns of overreach, underscoring the importance of safeguarding the principle of due process of law to maintain legal certainty and investor trust.

Company Statement

CPA’s lead counsel, Agustinus, SH, strongly condemned the investigators’ actions:

“Our client, PT Crown Pacific Abadi, has always conducted business in compliance with the law. The unlawful seizure inflicted enormous legal and economic harm. The pretrial court clearly ruled the seizure invalid, yet investigators repeated the same action without proper legal basis.

 

We demand clarification and a public apology from state officials who made disproportionate statements in the media. The damages suffered by our client—withdrawn partners, plummeting production, and the loss of thousands of cubic meters of timber—are severe and cannot be ignored. This has gravely undermined the dignity of the company.”

 

Agustinus further emphasized that CPA holds a Timber Legality Verification System (SVLK) certificate, and based on the defense arguments and the final court ruling, the prosecution’s charges were found unproven beyond reasonable doubt. The court ordered the return of CPA’s timber and PT Putra Selebes’ containers, along with the restoration of the company’s legal standing and corporate reputation.

With this press conference, CPA signaled its determination to ensure justice and legal certainty are upheld. The company stressed that only a fair and consistent rule of law can restore Papua’s investment climate and guarantee protection for legitimate businesses operating in the region.( YBM.CN)