Temasek is punished for telco monopoly in Indonesia
The Indonesian commission for the supervision of business competition (KPPU) punished Singapore holdings, Temasek, for having 2 telecommunication operator by cross-ownership as there is indication about tariff monopoly. Temasek holds Telkomsel via Singtel and Indosat using STT Telemedia. Telkomsel and Indosat are state-own company as the largest telecommunication operator in Indonesia with more than 60 million subscribers all together.
Temasek is suspected doing monopoly, having two companies in the same area and try not to compete each other. Both are suspected to charge high tariff for customers, claimed to gain up to 30 trillion Rupiah (about more than US$ 3 billion) for consumer loss.
The commission decides Temasek to sell their ownership in one of two companies, lower Telkomsel tariff to 15%, and pay for 250 billion Rupiah penalty (about US$ 30 million). Currently, Temasek owns 35% of Telkomsel’s shares and 41.94% Indosat’s shares.
Source: KPPU (Indonesian)
Print Posted by Amir Karimuddin on November 20th, 2007
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2 responses
I wonder which company is eyeing a stake in those companies. Why wasn’t temasek declined the cross ownership when it came in in the first place?
koolgeek (November 20th, 2007 at 6:14 am)
Temasek declined to have cross ownership and will fight back.
Amir Karimuddin (November 21st, 2007 at 8:53 am)