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.