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.