ST Telemedia move on Indosat stake `an insult` to RI legal system - KPPU
Jakarta (ANTARA News) - Singapore Technologies Telemedia's (ST Telemedia) decision to sell its entire stake in PT Indosat Tbk, Indonesia's second-largest mobile phone company, to partner Qatar Telecom is "an insult" to the legal system here, an official of the country's anti-trust body said on Monday.
"It is quite dangerous. It is an insult to the Indonesian legal system. We regret that Indonesian lawyers did not respect the system," Mohamad Iqbal, a member of the Commission for the Supervision of Business Competition, or KPPU, told Thomson Financial.
Last year KPPU ruled that Temasek Holdings has broken the country's anti-monopoly laws for controlling Indonesia's two biggest mobile phone operators -- Indosat and PT Telekomunikasi Selular (Telkomsel) -- and ordered the Singapore government investment firm to divest its holdings in either Indosat or Telkomsel.
An Indonesian district court upheld KPPU's ruling last month and Temasek has filed an appeal with the Supreme Court.
ST Telemedia, a wholly-owned unit of Temasek, said over the weekend that Qatar Telecom (Qtel) will pay $1.8 billion for the 40.8 percent stake in Indosat held by Asia Mobile Holdings, a joint venture between Qtel and ST Telemedia.
"ST Telemedia will no longer have any involvement in Indosat," the Singapore-based company said in a statement.
Iqbal said the news was surprising considering that Temasek is still awaiting the Indonesian Supreme Court's decision on its appeal against KPPU's ruling.
"I cannot say whether or not ST Telemedia is allowed to sell the stake (this way). We should trust the legal process," Iqbal said.
According to KPPU's ruling, ST Telemedia can only sell a maximum 10 percent stake in either Indosat or Telkomsel to potential buyers to prevent a single investor from owning the entire 40 percent block.
"If they really want to sell the stake, why didn't they just accept KPPU's ruling before. They have appealed to the Supreme Court but decided to sell the stake. This is not consistent," said Iqbal.
Apart from the Indosat stake, Temasek also owns 35 percent of Telkomsel via its 56-percent owned unit Singapore Telecommunications Ltd.
Amir Syamsuddin, a lawyer to Asia Mobile Holdings, told Thomson Financial that ST Telemedia has the right to sell the stake in Indosat since the Supreme Court has yet to make a decision, which means there is no permanent ruling yet against Temasek. (*)
"It is quite dangerous. It is an insult to the Indonesian legal system. We regret that Indonesian lawyers did not respect the system," Mohamad Iqbal, a member of the Commission for the Supervision of Business Competition, or KPPU, told Thomson Financial.
Last year KPPU ruled that Temasek Holdings has broken the country's anti-monopoly laws for controlling Indonesia's two biggest mobile phone operators -- Indosat and PT Telekomunikasi Selular (Telkomsel) -- and ordered the Singapore government investment firm to divest its holdings in either Indosat or Telkomsel.
An Indonesian district court upheld KPPU's ruling last month and Temasek has filed an appeal with the Supreme Court.
ST Telemedia, a wholly-owned unit of Temasek, said over the weekend that Qatar Telecom (Qtel) will pay $1.8 billion for the 40.8 percent stake in Indosat held by Asia Mobile Holdings, a joint venture between Qtel and ST Telemedia.
"ST Telemedia will no longer have any involvement in Indosat," the Singapore-based company said in a statement.
Iqbal said the news was surprising considering that Temasek is still awaiting the Indonesian Supreme Court's decision on its appeal against KPPU's ruling.
"I cannot say whether or not ST Telemedia is allowed to sell the stake (this way). We should trust the legal process," Iqbal said.
According to KPPU's ruling, ST Telemedia can only sell a maximum 10 percent stake in either Indosat or Telkomsel to potential buyers to prevent a single investor from owning the entire 40 percent block.
"If they really want to sell the stake, why didn't they just accept KPPU's ruling before. They have appealed to the Supreme Court but decided to sell the stake. This is not consistent," said Iqbal.
Apart from the Indosat stake, Temasek also owns 35 percent of Telkomsel via its 56-percent owned unit Singapore Telecommunications Ltd.
Amir Syamsuddin, a lawyer to Asia Mobile Holdings, told Thomson Financial that ST Telemedia has the right to sell the stake in Indosat since the Supreme Court has yet to make a decision, which means there is no permanent ruling yet against Temasek. (*)