Holdiko seeks to overturn ruling<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The trial against the Business Competition Supervisory Commission
\n(KPPU) over its recent ruling on alleged involvement of PT
\nHoldiko Perkasa in the Indomobil scandal kicked off on Wednesday,
\nwith the holding company asking the court to overturn the ruling.<\/p>\n
Lawyer Todung Mulya Lubis, who represents the company, said in
\na trial at the South Jakarta District Court that Holdiko did not
\nviolate the law on monopoly practices in the high profile tender
\nof Indomobil.<\/p>\n
It was the first hearing after Holdiko last month filed an
\nappeal to challenge KPPU's ruling which found the company guilty
\nof being involved in a conspiracy to allow a consortium led by PT
\nTrimegah Securities to win the Indomobil stake late last year.<\/p>\n
The anti-monopoly watchdog imposed a Rp 5 billion (US$575
\nmillion) fine on the company. KPPU also charged consulting firm
\nPT Deloitte & Touche, Tohmatsu FAS (DTT) and Trimegah Securities.<\/p>\n
The Indomobil controversy erupted when the government, through
\nthe Indonesian Bank Restructuring Agency (IBRA), sold last year
\nits 72.63 percent shares in PT Indomobil Sukses Internasional,
\nthe country's second largest automaker, to a consortium led by
\nTrimegah.<\/p>\n
The consortium paid Rp 625 billion for the stake, far below
\nthe actual value of the company when it was transferred to IBRA
\nin 1998. At that time the company was valued at around Rp 2.14
\ntrillion.<\/p>\n
Holdiko, a holding company set up by IBRA to sell the assets
\nformerly belonging to the Salim Group, was acting on behalf of
\nthe agency while DTT acted as the financial advisor for IBRA.<\/p>\n
Such low proceeds, coupled with the short period of the
\ntransactions, raised concerns that irregularities had taken place
\nduring the process. The whole tender process was completed in
\nless than two weeks.<\/p>\n
Responding to the wide range of calls, KPPU then launched an
\ninvestigation. In May, the commission announced the results and
\nconfirmed that irregularities had occurred and that all parties
\ninvolved would have to pay penalties.<\/p>\n
KPPU fined Holdiko Rp 5 billion, and DTT Rp 10 million and
\nalso barred Trimegah and DTT from being involved in the future
\nsale of assets held by IBRA.<\/p>\n
All parties denied any wrongdoing. According to them, the KPPU
\ndoes not have the authority to deliver such a verdict. They
\nargued that based on Antimonopoly Law No. 5\/1999, only courts can
\ndeliver such verdicts, not the KPPU.<\/p>",
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