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KPMG protests accountants' arrest

| Source: JP

KPMG protests accountants' arrest

The Jakarta Post, Jakarta

Auditing firm KPMG claims its two Malaysian accountants, who are
being held by South Sulawesi Police for visa violations, have
done nothing wrong.

The two accountants entered Indonesia with their immigration
documents in order, the company said in a media statement on
Wednesday.

The case, which has sparked anger among Malaysian officials,
began on Aug. 16 when the two accountants -- Choo Yao Chin and
Reimala Sivalingam -- were arrested while they were carrying out
an audit for a subcontractor of giant nickel miner PT
International Nickel Indonesia Tbk (PT Inco). The two were
charged with violating immigration laws as according to the
police they entered the country on tourist visas but were working
as consultants.

The KPMG maintains that the accountants have not breached any
laws, saying the two legally entered and worked in Indonesia as
they used a short visit pass, not a tourist visa as earlier
reported.

The KPMG's Malaysian representative argued that the use of a
short visit visa for business purposes was lawful.

The KPMG said the use of a short visit pass for business
purposes was stipulated in Presidential Decree No. 103/2003 on
visa exemption for short visits.

"According to the decree, passport holders from Malaysia are
among citizens of countries that do not require a work permit
based on reciprocal recognition and bilateral arrangements," said
the KPMG in its statement.

Under the decree, Malaysian citizens are permitted to enter
Indonesia if the purpose of their visit is in the context of
recreation or tourism, social-cultural or business reasons or as
a governmental duty.

Malaysian Deputy Prime Minister Najib Razak has voiced
concerns over the treatment of the two accountants by South
Sulawesi Police. The two professionals have been detained
alongside hardened criminals since last month.

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