Wednesday, October 10, 2007

Temasek Watch: Indonesia Accuses Temasek Of Monopoly

Indonesia Accuses Temasek Of Monopoly

(RTTNews) - Singapore investment company Temasek Holdings has been accused of violating Indonesia's anti-monopoly laws through its subsidiaries' shareholdings in two of Indonesia's largest mobile telecommunication operators, according to the Singapore News.

Following a 120-day probe, Indonesia's Anti-Monopoly Commission (KPPU) issued a 109-page report that stated that Temasek subsidiaries Indosat and Telkomsel, which dominate Indonesia's mobile sector, represent a conflict of interest.

Temasek subsidiaries own a 42 percent stake in Indosat and a 35 percent stake in Telkomsel. A total of 10 companies compete for shares of the Indonesian market worth US$5 billion.

Temasek has denied the charges, replying that Indosat and Telkomsel both have their own boards and function independently.

The charges have been submitted to an independent council that will deliver a verdict next month.

Original source is here

Business Times - 10 Oct 2007

Temasek to defend against Indonesia's ruling

SINGAPORE - Singapore's state investment firm Temasek Holdings said on Wednesday that it would defend itself against the findings by Indonesia's anti-trust body KPPU that it had violated the country's anti-monopoly laws.

'Temasek Holdings will vigorously defend its legal rights at all opportunities and in all available legal forums. As legal counsel for Temasek Holdings, I will be seeking clarification from KPPU on this matter,' Temasek said in a statement to Reuters, quoting its lawyer Todung Mulya Lubis.

'The claims against Temasek Holdings are baseless and without merit,' the email said.

Singapore's state TV reported late on Tuesday that Indonesia's anti-monopoly body KPPU had found that Singapore's Temasek violated the country's anti-monopoly laws through its stakes in two Indonesian telecommunications firms.

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