SingTel files appeal against KPPU anti-competitive practices decision

7 Jan 2008

Singapore Telecommunications (SingTel) and its wireless arm SingTel Mobile jointly filed an appeal with the District Court of Central Jakarta on 19 December 2007, seeking to reverse the decision of Indonesia’s Commission for Supervision of Business Competition (KPPU), alleging anti-competitive practices by the pair and other Singaporean and Indonesian companies. SingTel has outlined the main basis of its objections to the KPPU decision regarding the allegation: ‘The decision by the KPPU is wrong and has violated the Rule of Law in Indonesia,’ said SingTel lawyer Mr Wimbanu Widyatmoko. ‘Also, fundamental due process rights were not accorded those accused’, he said.

Mr Widyatmoko went on to say that ‘The KPPU decision also violates the principle of legal certainty as protected by the Indonesian constitution, and runs contrary to KPPU’s mission to promote business competition … The KPPU decision is not supported by adequate evidence. The KPPU distorted the meaning of present legal terms and invented new legal terms to justify its decision … Hence, it has acted as judge, jury and legislator. Further, the KPPU is trying to impose sanctions beyond its jurisdiction as it has no power to order divestment in this case … We have appealed to the Indonesian courts as they are in a position to put things right. They have demonstrated this in the past when they overturned KPPU decisions which were wrong.’ In its declaration SingTel points out that ‘SingTel and SingTel Mobile are not majority shareholders of the cellcos involved; SingTel and SingTel Mobile do not control Telkomsel; KPPU applied concepts contrary to recognised competition law concepts; and SingTel Mobile had regulatory approvals for Telkomsel acquisition.’