Parliament instructs government not to buy back Indosat shares

19 Jul 2007

Indonesia’s lower house has told the government not to buy back shares in the country’s second largest telecoms operator, Indosat, arguing such a move could potentially hamper long-term investment prospects for the telecoms industry. The state is looking to buy back shares currently held by Singapore Technologies Telemedia (STT), but parliament warned against such a course of action at a hearing with Information Ministry officials on Tuesday. The government lost control of Indosat in 2002 when STT purchased 40.77% of the company, but is thought to be keen to reassert its position as the controlling shareholder. It currently owns just 14.41% of the operator.

Indonesia, Indosat Ooredoo (incl. IM2)