Court throws out SingTel appeal

15 Sep 2008

The Indonesian Supreme Court has thrown out an appeal by SingTel and SingTel Mobile concerning a recent anti-monopoly ruling, the Singaporean firm said in a statement last Friday. In May 2008 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. At the time, 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 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’. However, on Friday SingTel said the Indonesian Supreme Court had announced its decision to dismiss the appeals by SingTel and its subsidiary against the Central Jakarta District Court ruling.

Indonesia, Singtel Group