Astro violates media law: Govt

Astro violates media law: Govt

JAKARTA: Ministry of Communications and Information said on Thursday that Malaysia's Astro All Asia Networks PLC has violated the media operations law by holding more than 20 percent in domestic cable television provider PT Direct Vision.

The law states that foreign investors are not allowed to own more than a fifth of local paid television broadcasters.

The ministry will consult with Indonesia's official investment board about the ownership share violation, it said in a statement.

The ministry said the investment board approved the Malaysian firm's 51 percent stake purchase of Direct Vision in February 2005.

The ministry also said that Direct Vision has violated the law by using a satellite that doesn't have "landing rights" in Indonesia.

It is, however, unclear if the ministry will demand the investment board retract the approval it granted Astro. Officials at the ministry were not available for clarification.

Astro officials were not immediately available for comment. -- Dow Jones