KPMG accountants arrested in Indonesia for allegedly auditing on visit pass
According to a report in the The Jakarta Post two Malaysian accountants, from the auditing firm KPMG are being held by South Sulawesi Police for visa violations. The case, which has sparked anger among Malaysian officials, began on August 16, 2005 when the two accountants were arrested while they were carrying out an audit for a subcontractor of giant nickel miner PT International Nickel Indonesia Tbk (PT Inco). The two were charged with violating immigration laws as according to the police they entered the country on tourist visas but were working as audit consultants.
According to KPMG, it maintains that the accountants have not breached any laws, saying the two legally entered and worked in Indonesia as they used a short visit pass, not a tourist visa as earlier reported.
The KPMG's Malaysian representative argued that the use of a short visit visa for business purposes was lawful and the use of a short visit pass for business purposes was stipulated in Presidential Decree No. 103/2003 on visa exemption for short visits. According to the decree, Malaysian nationals do not require a work permit based on reciprocal recognition and bilateral arrangements.
Under the decree, Malaysian citizens are permitted to enter Indonesia if the purpose of their visit is in the context of recreation or tourism, social-cultural or business reasons or as a governmental duty, which in this case the immigration officials held their reasons are not government duty.
According to KPMG, it maintains that the accountants have not breached any laws, saying the two legally entered and worked in Indonesia as they used a short visit pass, not a tourist visa as earlier reported.
The KPMG's Malaysian representative argued that the use of a short visit visa for business purposes was lawful and the use of a short visit pass for business purposes was stipulated in Presidential Decree No. 103/2003 on visa exemption for short visits. According to the decree, Malaysian nationals do not require a work permit based on reciprocal recognition and bilateral arrangements.
Under the decree, Malaysian citizens are permitted to enter Indonesia if the purpose of their visit is in the context of recreation or tourism, social-cultural or business reasons or as a governmental duty, which in this case the immigration officials held their reasons are not government duty.

