'Preauction vital' for optimum optimum auction results<\/p>\n
JAKARTA (JP): The government has advised auction petitioners
\nintending to sell assets publicly through auctions to conduct
\npreauction activities to get optimum results, the Ministry of
\nFinance said on Thursday.<\/p>\n
Hadiyanto, the head of the legal and public relations bureau
\nat the ministry said preauction activities included preparing the
\nassets to be auctioned and relevant documents, protecting the
\nassets and maintaining their value, assessing the floor-price
\nlimit professionally and marketing.<\/p>\n
\"Preauction activities which are not maximum may cause
\ndissatisfaction among various parties and which are often
\ndirected at the State Auction House,\" he said in a statement.<\/p>\n
The State Auction House (KLN) is effectively the sole
\norganizer for nonvoluntary public auctions in Indonesia.<\/p>\n
He said canceling or delaying a public auction was under the
\nauthority of the asset owners.<\/p>\n
\"KLN will only conduct an auction based on demand from asset
\nowners or auction petitioners,\" he said.<\/p>\n
He also said that KLN would reject an auction petition if the
\nrequirements were not fulfilled, including if petitioners or
\nasset owners failed to show authentic proof that they had the
\nright to auction the assets.<\/p>\n
\"A cancellation of a scheduled auction (already publicly
\nannounced) can only be made by the petitioner. If, for instance,
\na debtor had paid his obligations or following a court order,\" he
\nsaid.<\/p>\n
Hadiyanto said that private auction houses could assist in
\npreauction activities, and organize a voluntary public auction,
\nbut could not serve as a debt collector or a receiver in a
\nbankruptcy case.<\/p>\n
He added that nine private auction houses had been given
\nlicenses and had formed the Indonesian Auction Houses
\nAssociation.<\/p>\n
KLN is expected to get busier when the government starts to
\nauction a large number of assets confiscated from 16 liquidated
\nbanks in November, and if the number of debtors declared bankrupt
\nby the country's commercial court soars.<\/p>\n
The commercial court, which was launched in August and has so
\nfar handled 10 bankruptcy petitions, has not yet declared any
\nbankruptcies.<\/p>\n
The Ministry of Finance said the annual turnover of auctions
\norganized by KLN soared to Rp 900 billion (US$10 million) over
\nthe past two years, compared to an average of Rp 108 billion per
\nannum previously. (rei)<\/p>",
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"sponsor": "Okusi Associates",
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