Temasek Holdings to pay Indonesia fine

[Summer69]

Temasek Holdings to pay Indonesia fine

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Date : 18 January 2011 1247 hrs (SST)

URL : http://www.channelnewsasia.com/stories/afp...1105381/1/.html

 

SINGAPORE: Singapore's Temasek Holdings said Tuesday it will pay a fine of 15 billion Indonesian rupiah ($1.66 billion) imposed by Indonesia for breaching the country's anti-competition laws.

 

The state investment company decided to pay the fine after Indonesia's Supreme Court rejected its application to review the ruling by a competition watchdog that it had breached rules in the telecoms market, Temasek said.

 

"Temasek is disappointed that its application for civil review has been rejected as it has not contravened Indonesia's anti-monopoly laws," said Goh Yong Siang, senior managing director for strategic relations.

 

"As an international investor, Temasek continues to comply with the laws and regulations of Indonesia in its activities in Indonesia, and will duly follow up to pay the KPPU fine without prejudice to its legal position, and reserves all its rights," he said in a statement.

 

The competition watchdog KPPU ruled in November 2007 that Temasek was guilty of anti-competitive behaviour in Indonesia's cellular phone market by holding stakes in the two biggest domestic mobile phone operators.

 

Last month, the KPPU said it was considering seeking a court injunction to seize Temasek assets equivalent in value to the fine.

 

In addition to the fine, the KPPU ordered Temasek to divest its holdings in either PT Telekomunikasi Selular (Telkomsel) or PT Indosat.

 

Singapore Technologies Telemedia, a wholly-owned unit of Temasek, sold off its interest in PT Indosat to business partner Qatar Telecom in June 2009.

 

Temasek indirectly holds 35 percent of Telkomsel via its 56-percent owned unit Singapore Telecommunications Ltd. (SingTel).

 

-AFP/ac