SINGAPORE (Thomson Financial) - Singapore state-linked investment firm
Temasek Holdings Pte. Ltd. said on Friday the Indonesian district court has
found it guilty of violating anti-monopoly regulations through its affiliates'
cross holdings in Indonesia's two largest telecom operators.
The district court upheld the earlier ruling by the Indonesian competition
watchdog KPPU that Temasek must divest its stake in either PT Telkomsel or PT
Indosat and comply with the country's regulations on cross-holdings within two
years.
Temasek said it is "deeply disappointed by the verdict," and that it plans
to file an appeal with the Supreme Court.
"The facts are Temasek has no shares in Indosat and Telkomsel, and plays no
role in their business decisions and operations," said Temasek managing director
for strategic relations Goh Yong Siang in a statement.
Indosat is 41 percent owned by Asia Mobile Holdings (AMH), which is a 75
percent-held subsidiary of ST Telemedia. ST Telemedia is fully owned by Temasek.
Temasek indirectly holds 35 percent of PT Telkomsel via its 56-percent owned
unit Singapore Telecommunications Ltd.
"Both Telkomsel and Indosat are regulated businesses, operating within the
guidelines of the Indonesian Telecommunications Regulatory Authority or Badan
Regulasi Telekomunikasi Indonesia (BRTI). It is therefore not possible for
Temasek to engage in any monopolistic or anti-competitive practices in the
Indonesia mobile telecommunications market," said Goh.
pearl.bantillo@thomsonreuters.com
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