Indonesia's watchdog probes Singapore's
Temasek
Posted: 24 May 2007 2037 hrs
JAKARTA: Singapore's investment firm Temasek Holdings is under
investigation in Indonesia for alleged monopoly practices in the
telecoms industry, an official said on Thursday.
Indonesia's anti-monopoly watchdog said it would start interviewing
witnesses after concerns that the company was in breach of the
nation's business competition law.
The investigation centres on Temasek's alleged cross-ownership of
two of Indonesia's largest mobile phone companies, Indosat and
Telkomsel.
"We have started ... investigations and they are expected to take
three months in maximum," said Syamsul Maarif a commissioner with
the Business Competition Supervisory Commission.
"We will impose legal sanctions in the form of fines or a
cease-operation if we find evidence on Temasek's monopoly
practices," Maarif told AFP.
Temasek officials were expected to be interviewed in coming weeks
as part of the investigation, newspaper reports said on
Thursday.
Temasek owns a 56 percent stake in the SingTel Group, which has a
35 percent holding in Indonesia's largest mobile telecoms firm
Telkomsel, the Jakarta Post said.
Singapore Technologies Telemedia, wholly owned by Temasek, owns
41.9 percent of Indonesia's second largest telecommunications
company Indosat, it said.
The cross-ownership breached the 1999 Anti-monopoly Law, the
newspaper said.
Commission chairman Muhammad Iqbal said it has already found "signs
of a lack of competition between Telkomsel and Indosat" including
similar prices for their mobile phone products.
This "indicates possible strategic control by their parent
company", he told the newspaper.
Temasek was not immediately available for comment.
Established in 1974 by the government, Temasek controls some of
Asia's best-known companies including Singapore Airlines and
Singapore Telecommunications.
Its corporate portfolio is valued at S$129 billion (US$85
billion).
It has stepped up its investments in Asia's emerging economies in
recent years, snapping up stakes in companies in the financial,
telecoms and technology sectors.
- AFP/so
