Economists hail KPPU ruling on Indomobil scandal<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
Analysts welcomed on Friday the sanctions imposed by antimonopoly
\nwatchdog Business Competition Supervisory Commission (KPPU) on
\nparties involved in the Indomobil scandal, saying the move would
\nhelp revive investor confidence in this country.<\/p>\n
They, however, expressed concern that the wrongdoers could
\nstill get away due to the corrupt court system.<\/p>\n
\"The sanctions are fair enough ... But my concern is that the
\ncourt may fail to support the Commission's ruling because of
\nbribes,\" said Dradjat Wibowo, an economist at the Institute for
\nDevelopment, Economics and Finance (Indef).<\/p>\n
KPPU announced the result on Thursday of its investigation
\ninto the Indomobil case, and imposed penalties on six firms
\nincluding high profile companies like local brokerage PT Trimegah
\nSecurities and the local unit of Deloitte & Touche consulting
\ngiant. The Commission also barred the two from any role in the
\nfuture sale of assets held by the Indonesian Bank Restructuring
\nAgency (IBRA).<\/p>\n
The Indomobil case centered on the sale of the government's
\n72.63 percent stake in automaker PT Indomobil Sukses
\nInternasional last year, which was won by a consortium called PT
\nCipta Sarana Duta Perkasa. Trimegah led the consortium, while
\nDeloitte & Touche was the financial advisor in the transaction.<\/p>\n
KPPU said that the consortium managed to win the Indomobil
\nshares at a very low price of around Rp 625 billion (compared to
\nRp 2.4 trillion, the value of the company when it was taken over
\nby the government via IBRA) by conspiring with several parties,
\npossibly involving IBRA officials.<\/p>\n
It said that such a conspiracy to win a tender process was
\nagainst Antimonopoly Law No. 5\/1999.<\/p>\n
The Commission had also asked the Attorney General's Office to
\nlaunch an investigation into IBRA officials responsible for the
\ntransaction.<\/p>\n
Trimegah and Cipta Sarana, which must pay penalties of Rp 10.5
\nbillion and Rp 228 billion respectively, have objected to the
\nKPPU ruling and plan to file a complaint with the South Jakarta
\nDistrict Court.<\/p>\n
According to the law, they are allowed to file the complaint
\nwith the court about the KPPU findings within 14 days.<\/p>\n
Drajat feared that many Indonesian judges were still amenable
\nto accepting bribes especially from big companies.<\/p>\n
Meanwhile, University of Gadjah Mada economist Sri Adiningsih
\nalso welcomed the KPPU ruling, but quickly added that the
\nCommission must be transparent with its investigation findings.<\/p>\n
She also said that investors were closely watching the case,
\nand that they want to see that the law is being seriously
\nenforced in this country.<\/p>\n
Raden Pardede, an economist at Danareksa Institute, concurred,
\nsaying that this would be a test case for the court.<\/p>\n
\"This problem is very complicated, especially for our court
\nsystem because they have never handled such a (business) scandal
\nbefore,\" Raden said.<\/p>",
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"sponsor": "Okusi Associates",
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