Eddy Pianto defends Telkom audit

Eddy Pianto defends Telkom audit

The Jakarta Post, Jakarta

Accounting firm Eddy Pianto stands by its audit of the 2002
financial report of state-owned telecommunication company PT
Telekomunikasi Indonesia (Telkom).

The firm's owner, Eddy Pianto, told The Jakarta Post by
telephone from Australia that PriceWaterhouseCoopers (PWC) played
a role in the rejection of Telkom's report by the United States
Securities and Exchange Commission (SEC).

He explained that the primary reason behind the rejection by
SEC of Telkom's financial report was because PWC, as the auditor
of Telkom's cellular unit PT Telekomunikasi Selular (Telkomsel),
refused to give its consent for Telkom to include Telkomsel's
audit in its SEC filing.

"According to SEC regulations, this is not an issue related to
the Eddy Pianto accounting firm, but rather an issue between
Telkom and the auditor of its subsidiary, in this case PWC," said
Eddy.

However, PWC in a press statement signed by partner Irhoan
Tanudiredja said that it was unable to give any comment on the
accusation, because of the firm's "current engagement with
Telkom".

Telkom, which is listed at the Jakarta Stock Exchange and the
New York Stock Exchange (NYSE), was forced by SEC to re-audit its
2002 financial accounts after the one audited by Eddy Pianto.

SEC has yet to announce the reason behind the rejection but
some speculate it was because Eddy Pianto had no affiliation with
an accounting firm certified by SEC.

However, Eddy blasted the speculation.

"There are no regulations at the SEC regarding qualifications
for acceptance of foreign auditors, only that they should be
knowledgeable regarding U.S. generally accepted accounting
principles (U.S. GAAP), U.S. generally accepted auditing
standards (U.S. GAAS), the SEC rules and other pronouncements
with respect to accounting and auditor independence and that the
firm is in good standing in its country origin.

"These principles were all followed in the Telkom audit," Eddy
said.

The SEC has given Telkom until July 15 to resubmit the audited
financial report. If it fails, the SEC will remove Telkom from
the NYSE. However, the deadline has been extended several times.

In June, Telkom appointed PWC to do the audit.

While insisting that affiliation with a SEC-certified firm was
not a requirement of the SEC, Eddy noted that it had an
affiliation with Grant Thornton International during the auditing
of Telkom, which is certified by the SEC. He said the affiliation
was effective until after the Telkom audit was concluded by the
firm.

The firm's affiliation with Grant Thornton was effective until
March 31, 2003, while the Telkom audit was completed on March 25.

According to Eddy, his accounting firm is now affiliated with
Kreston International.