JP\/11\/Deloitte<\/p>\n
Berni K. Moestafa
\nThe Jakarta Post
\nJakarta<\/p>\n
Consultancy firm Deloitte & Touche, which advised the
\nIndonesian Bank Restructuring Agency (IBRA) on the controversial
\nsale of a former Salim Group company, PT Indomobil Sukses
\nInternasional, has resurfaced as IBRA's consultant for the high-
\nprofile sale of Salim's PT Bank Central Asia (BCA).<\/p>\n
IBRA spokesman Suryo Susilo confirmed reports that next to PT
\nMerrill Lynch Indonesia and PT Danareksa Sekuritas, IBRA had also
\nappointed Deloitte as its adviser in the sale of BCA.<\/p>\n
\"It (Deloitte) was appointed as our consultant to review
\nproposals submitted by our two disposal advisers,\" he told The
\nJakarta Post on Thursday.<\/p>\n
Deloitte's emergence as IBRA's consultant for BCA comes on the
\nheels of its much-criticized role in the sale of Indomobil.<\/p>\n
Last month, IBRA sold a 73.63 percent stake in Salim's
\nIndomobil to PT Trimegah Securities for Rp 625 billion (about
\nUS$60 million).<\/p>\n
The sale drew criticism from analysts who charged that the
\nsale price was far too low. They also suspected Trimegah had
\nacted as a front for Salim to regain control over Indomobil.<\/p>\n
IBRA took over Indomobil in 1998 under a settlement scheme for
\nSalim's debts to the agency.<\/p>\n
IBRA has banned Salim from reentering Indomobil until the
\ngroup has settled its debts, worth some Rp 52 trillion.<\/p>\n
In 1998, battered by the economic crisis, the ailing Indomobil
\nwas valued at around Rp 2,500 a share.<\/p>\n
Now, still in bad financial shape but with sales up fivefold,
\nTrimegah bought the company for Rp 625 a share.<\/p>\n
Deloitte had advised IBRA to sell Indomobil at that price.<\/p>\n
Indomobil's controversial sale has drawn the attention of
\nlegislators, who might call for Deloitte's and IBRA's
\nexplanation.<\/p>\n
\"The bidding process was too short and hastily done,\" Benny
\nPasaribu, chairman of the House of Representatives' Commission IX
\nfor financial affairs, was quoted as saying by Bloomberg. \"The
\ntransparency of the transaction is under question,\" he said.<\/p>\n
At present, IBRA plans to sell a 51 percent stake in Salim's
\nBCA to strategic investors under a bidding process it hopes to
\nfinalize at the end of this month.<\/p>\n
BCA's sale has been delayed three times, mainly due to what
\nmany believe has been politicking within IBRA and interference
\nfrom legislators.<\/p>\n
Two years of attempts to sell the bank have at last produced a
\nfinal list of eight bidders, but few with sound banking
\nexperience.<\/p>\n
British-based Standard Chartered Bank and U.S. investment firm
\nNewbridge Capital are among those deemed as strategic.<\/p>\n
The two appear on the list alongside bidders such as the
\nIndonesian Batik Cooperatives Association (GKBI), the Indonesian
\nRecovery Fund Limited, Berca Consortium, and again Trimegah,
\nwhich is leading a consortium of Bank Panin shareholders.<\/p>\n
With such names dotting the list, suspicion of Salim trying to
\nregain control of his bank has grown stronger.<\/p>\n
An IBRA source told The Post that Deloitte took part in
\ndrawing up the criteria IBRA used for selecting the final bidders
\nfor BCA.<\/p>\n
This was confirmed by an official at IBRA's Consultancy
\nManagement Unit. \"Our advisers submitted the criteria, which we
\ndiscussed with Deloitte,\" said the official, who refused to allow
\nhis name to be quoted.<\/p>\n
Unlike Merrill Lynch and Danareksa, Deloitte advised IBRA on
\nevery aspect of BCA's sale, including when it consulted
\nlegislators and Bank Indonesia.<\/p>\n
\"It (Deloitte) is normally not present when we meet other
\ninstitutions, but we always seek its input afterwards,\" he
\nexplained.<\/p>\n
Nonetheless, bidders must also pass Bank Indonesia's fit and
\nproper test which, among other things, aims to filter out Salim
\ninvolvement.<\/p>\n
Deloitte executives could not be reached for comment. A
\ncompany official said they were on leave until next week.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp11deloitte-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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