Holdiko seeks to overturn ruling

Holdiko seeks to overturn ruling

The Jakarta Post, Jakarta

The trial against the Business Competition Supervisory Commission
(KPPU) over its recent ruling on alleged involvement of PT
Holdiko Perkasa in the Indomobil scandal kicked off on Wednesday,
with the holding company asking the court to overturn the ruling.

Lawyer Todung Mulya Lubis, who represents the company, said in
a trial at the South Jakarta District Court that Holdiko did not
violate the law on monopoly practices in the high profile tender
of Indomobil.

It was the first hearing after Holdiko last month filed an
appeal to challenge KPPU's ruling which found the company guilty
of being involved in a conspiracy to allow a consortium led by PT
Trimegah Securities to win the Indomobil stake late last year.

The anti-monopoly watchdog imposed a Rp 5 billion (US$575
million) fine on the company. KPPU also charged consulting firm
PT Deloitte & Touche, Tohmatsu FAS (DTT) and Trimegah Securities.

The Indomobil controversy erupted when the government, through
the Indonesian Bank Restructuring Agency (IBRA), sold last year
its 72.63 percent shares in PT Indomobil Sukses Internasional,
the country's second largest automaker, to a consortium led by
Trimegah.

The consortium paid Rp 625 billion for the stake, far below
the actual value of the company when it was transferred to IBRA
in 1998. At that time the company was valued at around Rp 2.14
trillion.

Holdiko, a holding company set up by IBRA to sell the assets
formerly belonging to the Salim Group, was acting on behalf of
the agency while DTT acted as the financial advisor for IBRA.

Such low proceeds, coupled with the short period of the
transactions, raised concerns that irregularities had taken place
during the process. The whole tender process was completed in
less than two weeks.

Responding to the wide range of calls, KPPU then launched an
investigation. In May, the commission announced the results and
confirmed that irregularities had occurred and that all parties
involved would have to pay penalties.

KPPU fined Holdiko Rp 5 billion, and DTT Rp 10 million and
also barred Trimegah and DTT from being involved in the future
sale of assets held by IBRA.

All parties denied any wrongdoing. According to them, the KPPU
does not have the authority to deliver such a verdict. They
argued that based on Antimonopoly Law No. 5/1999, only courts can
deliver such verdicts, not the KPPU.