SINGAPORE: The Indonesian Anti-Monopoly Agency said it is set to seize assets of Temasek Holdings in Indonesia, according to a report in the Koran Tempo newspaper.
The report said the Singapore investment company had failed to pay fines after being found guilty of breaching anti-competition laws in 2007.
However, in response to queries from Channel NewsAsia, Goh Yong Siang, senior managing director, strategic relations at Temasek, said: "Temasek has not received official notification from the supreme court."
Temasek is reportedly being fined 15 billion Rupiah (S$2.2 million) for each of the eight companies under Temasek that are operating in the country.
The Indonesian newspaper named SingTel, ST Telemedia, STT Communication, Asia Mobile Holding Company, Asia Mobile Holdings, Indonesia Communications and its privately-held company Indonesia Communications Pte Ltd as well as Singapore Telecom Mobile.
This follows a ruling in November 2007 from Indonesia's Commission for the Supervision of Business Competition (KPPU) which said it found Temasek guilty of engaging in monopolistic practices and anti-competitive behaviour in the country's cellular market through two Indonesian telcos - Telkomsel and Indosat.
The KPPU said Temasek controls Telkomsel and Indosat through its subsidiaries.
At the time, it said the "Temasek Business Group's" ownership of Telkomsel and Indosat resulted in control of more than 50 per cent of the celluar market by the group and the control or collusion between Telkomsel and Indosat to influence Indosat's performance for the benefit of Telkomsel.
This, it said, led to decreased competition in the local cellular market, and resulted in price leadership by Telkomsel, causing consumer loss.
In December 2007, Temasek filed an appeal at the Central Jakarta District Court, claiming there was no basis for the KPPU decision.
Temasek also said there was no such thing as the "Temasek Business Group" and its subsidiaries operate independently.
Temasek also claimed it has no direct shares in Telkomsel and Indosat, and they are instead owned by SingTel and ST Telemedia.
It lost a final appeal, however, in May this year after the Indonesian Supreme Court upheld the KPPU judgement.
The Central Jakarta district court first ruled in KPPU's favour in May 2008.
According to Temasek, shares owned by ST Telemedia and SingTel in Indosat and Telkomsel, respectively, are not more than 50 per cent.
In June 2008, Qatar Telecom bought 40.8 per cent stake in Indosat from its venture company with ST Telemedia.
A SingTel unit owns 35 per cent of Telkomsel, according to a Bloomberg news report earlier this year.
-CNA/wk
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1100389/1/.html
The report said the Singapore investment company had failed to pay fines after being found guilty of breaching anti-competition laws in 2007.
However, in response to queries from Channel NewsAsia, Goh Yong Siang, senior managing director, strategic relations at Temasek, said: "Temasek has not received official notification from the supreme court."
Temasek is reportedly being fined 15 billion Rupiah (S$2.2 million) for each of the eight companies under Temasek that are operating in the country.
The Indonesian newspaper named SingTel, ST Telemedia, STT Communication, Asia Mobile Holding Company, Asia Mobile Holdings, Indonesia Communications and its privately-held company Indonesia Communications Pte Ltd as well as Singapore Telecom Mobile.
This follows a ruling in November 2007 from Indonesia's Commission for the Supervision of Business Competition (KPPU) which said it found Temasek guilty of engaging in monopolistic practices and anti-competitive behaviour in the country's cellular market through two Indonesian telcos - Telkomsel and Indosat.
The KPPU said Temasek controls Telkomsel and Indosat through its subsidiaries.
At the time, it said the "Temasek Business Group's" ownership of Telkomsel and Indosat resulted in control of more than 50 per cent of the celluar market by the group and the control or collusion between Telkomsel and Indosat to influence Indosat's performance for the benefit of Telkomsel.
This, it said, led to decreased competition in the local cellular market, and resulted in price leadership by Telkomsel, causing consumer loss.
In December 2007, Temasek filed an appeal at the Central Jakarta District Court, claiming there was no basis for the KPPU decision.
Temasek also said there was no such thing as the "Temasek Business Group" and its subsidiaries operate independently.
Temasek also claimed it has no direct shares in Telkomsel and Indosat, and they are instead owned by SingTel and ST Telemedia.
It lost a final appeal, however, in May this year after the Indonesian Supreme Court upheld the KPPU judgement.
The Central Jakarta district court first ruled in KPPU's favour in May 2008.
According to Temasek, shares owned by ST Telemedia and SingTel in Indosat and Telkomsel, respectively, are not more than 50 per cent.
In June 2008, Qatar Telecom bought 40.8 per cent stake in Indosat from its venture company with ST Telemedia.
A SingTel unit owns 35 per cent of Telkomsel, according to a Bloomberg news report earlier this year.
-CNA/wk
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1100389/1/.html
