Ernst & Young tie up with local firms

JAKARTA (JP): Ernst & Young of the United States has entered into an alliance with two local accounting firms, Hanadi Rahardja and Sarwoko & Sandjaja, to benefit from the country's growing need for consultancy services.

Ernst & Young Indonesia's Peter Knox said the alliance would allow the New York-based consultancy company to increase its number of Indonesian clients.

"The partnership is needed for our business to grow and to expand opportunities for our people," Peter said.

The deal was signed on Oct. 1 and was expected to benefit all parties, Iman Sarwoko, the new alliance's managing partner, said on Thursday.

Iman said that Ernst & Young was a quality firm whose strengths would benefit its local partners.

Ernst & Young is aware of the growing opportunity in Indonesia in the area of corporate restructuring, Iman said.

He added that Ernst & Young was working on a number of prestigious contracts with the Indonesian government. One of the contracts is to assist Asset Management Unit (AMU) evaluate the assets and liabilities of problem banks.

AMU, a special task force created as part of the government's bank restructuring program, is designed to manage, restructure and sell the assets of problem banks.

Hanadi Rahardja, the chairman of the alliance, said that the alliance would allow the local firms to help clients become global corporations.

"The alliance will provide us with the knowledge and opportunities available from the 85,000 Ernst & Young professionals worldwide," Hanadi added.

On the domestic investment climate, Peter Knox observed that well-informed foreign investors had confidence in Indonesia's underlying economic fundamentals while demanding more certainty in the political and economic spheres.

Ernst & Young provides auditing, taxation, management consulting, corporate advisory and business advisory services.

The firm operates through member firms in over 132 countries with worldwide revenues of US$11 billion. (02)