Thu, 22 Sep 2005

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.