The Jakarta Post’s front page lead today wonders what is behind the Business Competition Supervisory Commission”s (KPPU) zeal in investigating Temasek’s equity involvement in Indonesia’s telecoms industry.The article contains quotes suggesting that the KPPU may have been inspired by Russian company Altimo to investigate Temasek. The Singapore conglomerate’s movements have by and large been fairly transparent and known to Indonesians for sime time.
The timing of the KKPU’s decision to investigate Temasek now is curious, if not suspicious. More on Russian telco Altimo here.
|KPPU turns up heat on Temasek
Andi Haswidi, The Jakarta Post, Jakarta
The Business Competition Supervisory Commission (KPPU), the country’s antimonopoly watchdog, said Wednesday it had uncovered prima facie evidence of monopoly practices by Singapore’s Temasek Holdings in Indonesia’s telecoms industry.
KPPU chairman Muhammad Iqbal told The Jakarta Post that the findings marked the end of the preliminary examination of the case, and the beginning of a more detailed investigation.
“We will start summoning witnesses some time next week, including from Temasek,” Iqbal said.
Iqbal said the evidence that had been uncovered included the fact that there was cross-ownership by Temasek in Indosat and Telkomsel, which violated article 27 of the 1999 Antimonopoly Law.
Temasek owns a 56 percent stake in the SingTel Group, which in turn holds a 35 percent stake in Indonesia’s largest mobile telecoms firm, Telkomsel.
Sometimes it’s hard to see through the clutter. I think you would benefit by reading a Financial Times version of this investigation: http://www.ft.com/cms/s/c8080286-0988-11dc-a349-000b5df10621.html