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