By Jonathan Peeris | Posted: 18 January 2011 1247 hrs
SINGAPORE: Singapore's Temasek Holdings said Tuesday
it will pay a fine of 15 billion Indonesian rupiah (US$1.7 million)
imposed by Indonesia for breaching the country's anti-competition
laws.
The state investment company decided to pay the fine after
Indonesia's Supreme Court rejected its application to review the
ruling by a competition watchdog that it had breached rules in the
telecoms market, Temasek said.
"Temasek is disappointed that its application for civil review has
been rejected as it has not contravened Indonesia's anti-monopoly
laws," said Goh Yong Siang, senior managing director for strategic
relations.
"As an international investor, Temasek continues to comply with the
laws and regulations of Indonesia in its activities in Indonesia,
and will duly follow up to pay the KPPU fine without prejudice to
its legal position, and reserves all its rights," he said in a
statement.
The competition watchdog KPPU ruled in November 2007 that Temasek
was guilty of anti-competitive behaviour in Indonesia's cellular
phone market by holding stakes in the two biggest domestic mobile
phone operators.
Temasek appealed against that ruling in May 2008 but was turned
down later that year.
It then applied to the Indonesian Supreme Court for a civil review
of the decision. The application was rejected in May last
year.
Last month, the KPPU said it was considering seeking a court
injunction to seize Temasek assets equivalent in value to the
fine.
In addition to the fine, the KPPU ordered Temasek to divest its
holdings in either PT Telekomunikasi Selular (Telkomsel) or PT
Indosat.
Singapore Technologies Telemedia, a wholly-owned unit of Temasek,
sold off its interest in PT Indosat to business partner Qatar
Telecom in June 2009.
Temasek indirectly holds 35 per cent of Telkomsel via its 56-per
cent owned unit Singapore Telecommunications Ltd. (SingTel).
-AFP/CNA/ac