Jakarta (ANRARA News) - The Supreme Court`s decision to reject Singapore`s investment firm Temasek Holdings Pte Ltd`s legal review suit will compromise Indonesia`s position in world business, an NGO spokesman said.
"This will possibly cause a lowering of Indonesia`s rating as a business-friendly country," M Malana Bungaran of Indonesian Developments Monitoring said in a press statement here on Friday.
On September 9, 2008, the Supreme Court (MA) rejected Temasek`s legal review suit against a ruling by Indonesia`s Business Competition Commission (KPPU) that the Singapore company had violated the country`s monopoly and business competition law.
It confirmed the Central Jakarta District Court`s verdict last May that Temasek and eight of its subsidiaries had violated Article 27 a of Law No. 5 /1999 on Monopolistic and Unsound Business Competition Practices.
The district court also fined Temasek and its subsidiaries Rp15 billion each.
Maulana Bungaran said that a survey by the World Bank and International Finance Corporation on "Doing Business 2009" placed Indonesia in the 129th rank on a list of 181 business-friendly countries.
Next year it will be difficult to hope for a rise in Indonesia`s rating, Maulana said.
He said one of the important references of the World Bank in determining the rating was legal business certainty such as the implementation of business agreement contracts and the termination of such contracts.
Temasek was initially invited by Indonesia to make its investment in the country but later it was treated as a violator of the business competition law, he said.
"If a big company like Temasek could be treated like that there would be small possibility for small firms to invest in Indonesia," he said.
Maulana also thought there was a group of people who tried to capitalize on the Supreme Court`s decision for their personal benefit by suggesting that consumers had suffered certain losses so that they had the right to claim compensations. (*)