KPPU to announce Indomobil probe soon

Adianto P. Simamora, The Jakarta Post, Jakarta

The Business Competition Supervisory Commission (KPPU) said on Tuesday it had completed its investigation into alleged manipulation during the high profile sale of government shares in automaker PT Indomobil Sukses Internasional, and planned to announce the results of its probe this week.

"The investigation has been completed and we hope to announce the findings to the public this week," KPPU chairman Mohammad Iqbal told The Jakarta Post.

He said the investigation process had been completed within 30 days as planned.

He declined to provide further details.

The government sold its 72 percent stake in Indomobil in December last year to a consortium led by PT Trimegah Securities.

But there have been allegations that Trimegah was merely acting as a proxy for the Salim Group, the founder of the carmaker, which has been banned by the government from repurchasing those of its former assets that have been nationalized.

The diversified Salim Group, which has transferred the ownership of some 100 of its companies to the government in a bid to repay its debts, has been suspected of trying to buy back the assets.

The suspicion that Salim was behind the Indomobil stake transaction emerged after the Indonesian Bank Restructuring Agency (IBRA), the special government agency that controlled the Indomobil stake, completed the sell-off process without giving other bidders aside from Trimegah a proper chance to bid, and the fact that the sale price was very low.

IBRA was led by I Putu Gede Ary Suta at the time.

According to article 22 of antimonopoly law No. 5/1999, businesses are prohibited from conspiring with other parties to win a tender as this would constitute an unfair business practice.

The KPPU is the agency established by the government to enforce this law.

If evidence of conspiracy is found in the Indomobil sale process, the KPPU can annul the deal or impose a fine of between Rp 1 billion and Rp 25 billion on the Trimegah-led consortium.

After announcing its findings, the KPPU will subsequently carry out monitoring to see whether its decision is carried out.

Trimegah will also be allowed to appeal to the district court within 14 days of the announcement.