DTT, Holdiko file appeal over KPPU ruling on Indomobil case

DTT, Holdiko file appeal over KPPU ruling on Indomobil case

Fitri Wulandari, The Jakarta Post, Jakarta

Consulting firm PT Deloitte & Touche, Tohmatsu (DTT) FAS and
holding company PT Holdiko Perkasa filed an appeal on Monday at
two separate courts over the recent ruling of the Business
Competition Supervisory Commission (KPPU), which charged the two
for involvement in the Indomobil scandal.

Both companies argued that the legal process was flawed in
KPPU's investigation into the case.

Ignatius Andy of Hadiputranto, Hadinoto and Partners law firm
representing DTT, claimed that his clients were questioned as a
witness not as the accused during the KPPU investigation.

Therefore, the sanction and penalty imposed on his client did
not have a legal foundation, he said.

Todung Mulya Lubis, who represents Holdiko, argued that his
client was not guilty of the alleged conspiracy.

"Holdiko made the decision with the consent of IBRA. And IBRA
had given written approval for the transaction," Todung told The
Jakarta Post, referring to the Indonesian Bank Restructuring
Agency (IBRA).

DTT filed the appeal at the Central Jakarta District Court,
while Holdiko at the South Jakarta District Court.

Both are waiting for the courts' decision which has to be
delivered within 30 days.

The Indomobil case centers on the sale of the government's
72.63 percent shares in PT Indomobil Sukses Internasional, the
country's second largest carmaker, late last year to a consortium
called PT Cipta Sarana Duta Perkasa.

The consortium, led by Trimegah Securities, paid Rp 625
billion for the stake, which analysts say was very cheap compared
to the value of the company of around Rp 2.14 trillion when it
was transferred to IBRA in 1998.

Indomobil is part of assets surrendered by the giant Salim
Group to IBRA to repay debts to the government. IBRA is tasked
with selling the assets to raise cash to help finance the state
budget deficit.

Holdiko is a holding company set up by IBRA to manage the
pledged Salim Group assets.

But the hurried Indomobil transaction raised suspicion that
Salim was behind the deal. This would violate existing
regulations as the government has banned Salim from repurchasing
the assets from IBRA.

KPPU then launched an investigation.

Last month the commission announced the investigation result,
saying that it had found irregularities in the Indomobil
transaction, and ruled that parties involved in the scandal
including high profile names like brokerage firm PT Trimegah
Securities, DTT and Holdiko pay penalties.

KPPU fined Holdiko Rp 5 billion, and DTT Rp 10 million.

DTT acted as financial advisor for IBRA in the transaction.

The commission also barred DTT and Trimegah from involvement
in the future sale of assets held by IBRA.

But the commission, which announced the results of its
investigation into the case, did not recommend a cancellation of
the transaction, saying that such a move would cause serious
consequences to the state budget.

Both DTT and Holdiko have objected to the penalties and
sanctions. According to them KPPU does not have the authority to
deliver a verdict.

"Based on Antimonopoly Law No. 5/1999, KPPU does not have the
authority to deliver a verdict. Only courts hold that authority,"
Andy stated.