BANYUWANGI – The business dispute between Russian investor Alexander Iakovlev and John Lundin, owner of PT Lundin Industry Invest, appears to be escalating. What began in Banyuwangi, East Java, is now attracting international attention as new facts continue to emerge.

According to information obtained, John Lundin is allegedly also listed as a Director of Super Dry International Pte Ltd, a company based at Robinson Square in Singapore. This indication surfaced during proceedings at the Central Jakarta District Court under case number 97/Pdt.G/2026/PN Jkt.Pst.

The case is being handled by Christo Laurenz Sanaky, SH, legal counsel for Kord Ltd, in which PT Lundin Industry Invest, owned by John Lundin, is named as the defendant.

In addition to allegations of breach of contract involving the purchase of a vessel valued at approximately Rp20 billion, further concerns have emerged regarding possible structural links between PT Lundin Industry Invest and several other entities, including PT Super Dry Marine Indonesia, Super Dry International Pte Ltd, North Sea Boats Pte Ltd, Abachi Holdings Pte Ltd, and Axis International Holdings Pte Ltd.

Several of these entities are reported to have overlapping control structures, share office addresses in Singapore and Jakarta, and involve recurring names in their management.

These circumstances have raised suspicions among the Russian investor of a possible international scheme involving tax avoidance and potential money laundering.

The dispute has sparked concern in Banyuwangi, where many fear it could damage the regency’s long-standing reputation as an investment-friendly destination.

Dr. Zaki Al Mubarok, M.Si, a member of the National Awakening Party (PKB) faction in the Banyuwangi Regional House of Representatives (DPRD), emphasized that legal certainty is essential for investors.

“Legal certainty is a crucial foundation for investors to conduct business activities in a region, accompanied by guarantees of convenience, security, and comfort in doing business,” said the legislator, popularly known as Gus Dewan, on Monday, May 11, 2026.
The chairman of the Special Committee for the Draft Regional Regulation on Public Order and Community Protection also urged the Banyuwangi Regency Government to provide protection.

“This is necessary to prevent similar incidents from happening again in the future and to preserve Banyuwangi’s image as an investment-friendly region,” he said.

Similar concerns were expressed by student activists. Mahasin Haikal Amanullah, Head of the Mukadimah Institute, said the government should provide firm legal protection so that foreign investors do not feel disadvantaged while investing in Banyuwangi.

Ilham Layli Mursyidi, Chairman of the Banyuwangi branch of the Islamic Students Association (HMI), also stressed that investment is a key driver of regional development, especially amid budget efficiency measures.

“If needed, for the sake of Banyuwangi’s good name, we are ready to help,” Ilham said.
The dispute originated from a partnership to develop the Banyuwangi International Yacht Club (BIYC) restaurant in 2020. Eko Sutrisno, legal counsel for Alexander Iakovlev, stated that the case concerns corporate governance issues and is currently being processed at the Banyuwangi District Court.

John Lundin’s legal team, however, has previously stated that the partnership was legitimate and based on mutually agreed capital participation. Regarding allegations of an order for a high-technology combat vessel from PT Lundin Industry Invest in Sukowidi, Banyuwangi, they denied that any such purchase transaction took place.

When asked about the latest developments and allegations concerning John Lundin’s role in Singapore, Moch. Zaeni, SH, MH, legal counsel for John Lundin, declined to comment further. He also refused to respond to recent protests opposing the so-called “Russian Village” project in Banyuwangi.

“We have no comment for the time being. The information is not suitable for public consumption because it concerns private companies, not publicly listed companies. If there are elements of defamation or false reporting, we will pursue legal action, both criminal and civil, including reporting the matter to the Press Council,” Zaeni said.

His refusal to elaborate has added to the uncertainty surrounding the case. According to information circulating, the purchase of a high-technology combat vessel by Alexander Iakovlev from PT Lundin Industry Invest was allegedly conducted indirectly through a company in Singapore, including the payment process. (*)