September 12, 2008
Indonesian court rejects Temasek Holdings’ appeal
Indonesia's Supreme Court has reportedly turned down an appeal by Singapore's Temasek Holdings and its sister companies for violating the country's anti-competition law, reported Channel News Asia, a Singapore government news agency.
According to sources close to the country's highest court, the verdict is expected to be read on Friday in Jakarta. Temasek Holdings and eight of its linked companies filed an appeal in May after a District Court upheld a ruling by Indonesia's Anti-Monopoly Commission (KPPU).
The Singapore companies maintained they have no direct control over the running of two of Indonesia's largest telecommunication companies - Telkomsel and Indosat.
Both control over 80 percent of Indonesia's mobile phone market.
Temasek owns 56 percent of Singtel, which has a 35 percent stake in Telkomsel. And Singapore Technologies Telemedia, which Temasek fully owns, controls 75 percent of Asia Mobile Holdings (AMH). AMH in turn owns 40 percent of Indosat.
However in June, AMH sold its entire stake in Indosat to Qatar Telecoms.
Analysts believe the move could spark another round of controversy since Qatar Telecoms has a 25 percent stake in AMH.
The district court ruled that the Singapore companies must release or reduce their shares in the two Indonesian telecommunication companies – but not to parties linked to them.