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Thu, May 24, 2012
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Temasek Loses Final Monopoly Appeal
Widya Utami & Achmad Sukarsono | May 24, 2010

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Singapore’s state-owned Temasek Holdings has lost its final appeal against a ruling that it breached anti-monopoly laws while holding stakes in competing Indonesian telecommunications companies, the Supreme Court in Jakarta said on Monday on its Web site.

The same court in September 2008 rejected a previous appeal and upheld a judgment by competition watchdog the Business Competition Supervisory Commission (KPPU) that Temasek breached antitrust laws by using indirect stakes in PT Telekomunikasi Selular (Telkomsel) and PT Indosat, the country’s top two mobile-phone service providers, to fix prices.

The Central Jakarta District Court first ruled in the KPPU’s favor in May 2008.

“The judicial review panel basically strengthened the previous Supreme Court ruling against the appeal,” KPPU spokesman Junaidi Masjhud said in an e-mailed statement. The ruling is “a valuable push for the KPPU to continue creating healthy business competition in the telecommunications industry,” he said.

The KPPU had not received a copy of the ruling, Junaidi added.

Goh Yong Siang, Temasek’s senior managing director for strategic relations, said on Monday it had not received official notification from the Indonesian Supreme Court.

Temasek said it would consider all legal options, including taking the case to international arbitration. Perry Cornelius, Temasek’s lawyer in Indonesia, could not be reached for comment.

Temasek’s Singapore Technologies Telemedia unit sold its stake in Indosat, Indonesia’s second-largest mobile-phone services provider, to Qatar Telecom in June 2008 after the district court ruling was handed down.

A unit of Singapore Telecommunications, Southeast Asia’s biggest phone operator which is majority owned by Temasek, has a 35 percent stake in Telkomsel, the company with the biggest customer base among Indonesia’s 11 mobile-phone carriers.

 

Bloomberg