KPPU to announce Indomobil probe soon

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.