Laksamana urges KPPU not to interfere in asset sales

Laksamana urges KPPU not to interfere in asset sales

The Jakarta Post, Jakarta

Minister of State Enterprises Laksamana Sukardi called on the
Business Competition Supervisory Commission (KPPU) not to
interfere in the government asset sale program as such
intervention could scare off would-be investors.

Laksamana said on Sunday that the duties of the KPPU under the
law were limited to ensuring that fair business practices were
upheld and monopolies prevented.

"I think the duties of the KPPU must be clearly redefined
because I see that its functions now are almost becoming equal to
those of the DPR (House of Representatives)," he was quoted by
Antara as saying.

Laksamana gave as an example the fact that the Commission had,
in his words, acted beyond its authority when it interrogated top
officials of the Indonesian Bank Restructuring Agency (IBRA) over
the tender process for the sale of the government's 51 percent
stake in the publicly listed Bank Central Asia (BCA).

He said that there was no reason for the KPPU to conduct such
inquiries as the tender process had yet to be completed.

Laksamana together with the Coordinating Minister for the
Economy, Dorodjatun Kuntjoro-Jakti, were in Sydney for a two-day
conference.

"In the BCA case, are there any unfair business practices? The
winner has not even been announced yet," Laksamana said.

Nine bidders are scheduled to submit their final bids on
Monday for the BCA stake. IBRA will announce the winning bidder
next month. Among of the front contenders are Standard Chartered
Bank, Newbridge Capital, and Farallon.

The KPPU, which was established in 1999 under Law No. 5/1999
on monopolies and unfair business competition, formed a special
team two weeks ago to monitor the high profile BCA tender amid
growing concern that the Salim Group, the founder of BCA, would
reenter the bank via a nominee.

Salim has been banned from reentering the bank until such time
as it settles its massive debts with the government.

BCA was nationalized by the government in 1998 in the wake of
the disastrous 1997 financial crisis, which sent many banks to
the wall.

The KPPU has also assigned the same team to investigate last
year's sale of the government's stake in another Salim asset, PT
Indomobil Sukses Internasional, the country's second largest
carmaker, amid suspicion that Salim had also been behind the
transaction.

But Laksamana said that such interference by the KPPU in the
government asset sale program could discourage potential bidders.

IBRA, which took control of assets worth around Rp 600
trillion (about US$60 billion) from ex-bank owners, closed banks,
and recapitalized banks, plans to sell more assets this year as
part of the effort to raise around Rp 42.8 trillion to help plug
the state budget deficit.

Laksamana's office, which oversees IBRA, is also planning to
launch a privatization program this year with the aim of raising
around Rp 6.5 trillion in cash.