Indonesia’s Widjajas: How APP unravelled to become the biggest EM corporate defaulter in history

by Sara Webb

• APP disclosed to creditors in 2001 that it had made a $220 million loss on two derivatives contracts, which had never appeared in its financial statements. It said its financial statements for 1997 to 2000, which were audited by Arthur Andersen, might have to be restated. 

Eka Tjipta Widjaja, patriarch of Sinar Mas

Some bankers questioned why the group had kept these two derivatives contracts quiet, who had authorized these transactions and whether there had been any need to do such deals in the first place.