Trimegah files second lawsuit against KPPU

Trimegah files second lawsuit against KPPU

Adianto P. Simamora, The Jakarta Post, Jakarta

PT Trimegah Securities has filed a second lawsuit against the
antimonopoly watchdog Business Competition Supervisory Commission
(KPPU), in a move that is being viewed by some as an effort to
influence the commission's investigation of the high-profile
Indomobil case.

KPPU chairman Mohammad Iqbal said on Wednesday the lawsuit was
filed with the Central Jakarta District Court on April 24.

"We believe that the second lawsuit is meant to put pressure
on us and to try and influence the KPPU's decision in the
Indomobil case," Iqbal said.

The Indomobil case centers on the sale of the government's 72
percent share in automaker PT Indomobil Sukses Internasional to a
consortium led by Trimegah, a publicly listed securities firm, in
December of last year.

There have been allegations that the Trimegah-led consortium
was merely a acting as a proxy for the Salim Family, the founder
of Indomobil. Salim, which transferred ownership in Indomobil and
numerous other companies to the Indonesian Bank Restructuring
Agency (IBRA) to repay debts to the government, has been banned
from repurchasing these ceded assets.

These allegations arose because of a belief by many observers
that IBRA rushed to complete the transaction, without giving
other investors sufficient time to submit proper bids. The sale
price was also seen as too low.

According to Article 22 of Antimonopoly Law No. 5/1999,
businesses are prohibited from conspiring with other parties to
win a tender; this is underlined in the article as being an
unfair business practice.

The allegations surrounding the Indomobil sale prompted the
KPPU, which was established by the government to enforce the
antimonopoly law, to launch an investigation.

The results of this investigation could lead either to the
cancellation of the deal, or a fine of between Rp 1 billion and
Rp 25 billion for the Trimegah-led consortium.

Iqbal said the commission would announce its findings in the
Indomobil case sometime this month.

The KPPU investigation also prompted the Attorney General's
Office to study the case to see whether it should launch its own
investigation.

Trimegah has accused the KPPU of releasing confidential
information concerning the transaction to the press. The company
filed its first lawsuit with the State Administrative Court.

The securities firm's corporate secretary, Rosinu, denied
suggestions Trimegah was attempting to block KPPU's investigation
with the lawsuits.

"There is no effort on our part to pressure or influence the
KPPU; we are only seeking justice," Rosinu told The Jakarta Post.

He said the release of confidential information about the
Indomobil transaction had tarnished the image of Trimegah and
frightened away clients, causing damage to its business.

Meanwhile, Iqbal said the KPPU had appointed a special team of
lawyers to deal with the lawsuits in both courts.

But KPPU has repeatedly said that since the commission is not
a government institution, the State Administrative Court has no
right to hear a lawsuit against it.