Temasek to take anti-monopoly appeal to the Supreme Court

13 May 2008

Singapore’s government-backed investment arm Temasek Holdings and its subsidiaries intend to appeal a Jakarta court ruling which adjudged they undertook in monopolistic behaviour, local press reported today. Last Friday the Central Jakarta District Court threw out Temasek’s appeal to have an anti-trust ruling overturned, fined the holding company USD1.6 million and ordered it to sell its stake in either of the country’s largest mobile operators – Telkomsel and Indosat’s Satelindo unit – within a year. However, Temasek’s legal representative, Todung Mulya Lubis, said the company would file an immediate appeal to the Supreme Court, accusing the court of ignoring the Indonesian government’s decision to privatise Indosat. Todung was quoted by major newspaper The Jakarta Post as saying: ‘The divestment in Indosat was done by government request because it needed revenue. The court should have respected the government.’ Temasek and the other companies implicated claim that the government and the competition watchdog, the Business Competition Supervisory Commission (KPPU), were ‘fully aware of the Temasek-linked company in the Indonesia telecommunications market’ when Indosat’s divestment was taking place, and intends to defend itself against what it sees as an ‘unjust ruling’.