The ruling of the Business Competition Supervisory Commission (KPPU), which views Temasek Holdings Pte Ltd to have violated the Anti-Monopoly Law and to have cross-ownerships in two Indonesian telecommunication companies, have made the stock prices of PT Indosat Tbk and PT Telkom go down.
At the trading closing on the Jakarta Stock Exchange (BEJ) today, Indosat's and Telkom's stock prices fell 4,76% and 3,35% by IDR400 and IDR350, respectively to IDR8,000 and IDR10,100.
Yesterday KPPU ruled that Temasek's cross-ownership in Indosat and Telkomsel had violated Article 27 of the Anti-Monopoly and Unhealthy Business Competition Law No. 5 year 1999.
Temasek has a 40.77% stake in PT Indosat Tbk through Indonesia Communcation Pte Ltd and controls a 35% stake in PT Telkomsel through Singapore Telecom Mobile Pte Ltd. The cross-ownership has inflicted losses on the market and cell phone subscribers. From 2003 to 2006, Telkomsel subscribers and Indosat subscribers had lost between IDR14.7 trillion and IDR30.8 trillion.
In the cross-ownership case, there are ten accused parties, namely Temasek Holdings Pte, Ltd, Singapore Technologies Telemedia Pte Ltd (STT), STT Communication Ltd, Asia Mobile Holding Company Pte Ltd, Asia Mobile Holding Pte Ltd, Indonesia Communication Limited, Indonesia Communication Pte Ltd, SingTel, Singtel Mobile Pte Ltd, and PT Telkomsel.
Tuesday, November 20, 2007
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