SINGAPORE: The Indonesian Anti-Monopoly Agency said
it is set to seize assets of Temasek Holdings in Indonesia,
according to a report in the Koran Tempo
newspaper.
The report said the Singapore investment company had
failed to pay fines after being found guilty of breaching
anti-competition laws in 2007.
However, in response to queries from Channel
NewsAsia, Goh Yong Siang, senior managing director, strategic
relations at Temasek, said: "Temasek has not received official
notification from the supreme court."
Temasek is reportedly being fined 15 billion Rupiah
(S$2.2 million) for each of the eight companies under Temasek that
are operating in the country.
The Indonesian newspaper named SingTel, ST Telemedia, STT
Communication, Asia Mobile Holding Company, Asia Mobile Holdings,
Indonesia Communications and its privately-held company Indonesia
Communications Pte Ltd as well as Singapore Telecom Mobile.
This follows a ruling in November 2007 from Indonesia's Commission
for the Supervision of Business Competition (KPPU) which said it
found Temasek guilty of engaging in monopolistic practices and
anti-competitive behaviour in the country's cellular market through
two Indonesian telcos - Telkomsel and Indosat.
The KPPU said Temasek controls Telkomsel and Indosat through its
subsidiaries.
At the time, it said the "Temasek Business Group's" ownership of
Telkomsel and Indosat resulted in control of more than 50 per cent
of the celluar market by the group and the control or collusion
between Telkomsel and Indosat to influence Indosat's performance
for the benefit of Telkomsel.
This, it said, led to decreased competition in the local cellular
market, and resulted in price leadership by Telkomsel, causing
consumer loss.
In December 2007, Temasek filed an appeal at the Central Jakarta
District Court, claiming there was no basis for the KPPU
decision.
Temasek also said there was no such thing as the "Temasek Business
Group" and its subsidiaries operate independently.
Temasek also claimed it has no direct shares in Telkomsel and
Indosat, and they are instead owned by SingTel and ST
Telemedia.
It lost a final appeal, however, in May this year after the
Indonesian Supreme Court upheld the KPPU judgement.
The Central Jakarta district court first ruled in KPPU's favour in
May 2008.
According to Temasek, shares owned by ST Telemedia and SingTel in
Indosat and Telkomsel, respectively, are not more than 50 per
cent.
In June 2008, Qatar Telecom bought 40.8 per cent stake in Indosat
from its venture company with ST Telemedia.
A SingTel unit owns 35 per cent of Telkomsel, according to a
Bloomberg news report earlier this year.
-CNA/wk
