Indonesia commission says Temasek violated anti-monopoly law
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JAKARTA: Indonesia's anti-monopoly commission said Temasek Holdings has violated the country's anti-monopoly laws through its ownership in two large mobile telecommunication operators.
Ending three months of investigations, the commission gave the Singapore investment company a fortnight to submit its defence.
A 109-page document on Singapore's Temasek Holdings is one of the most detailed investigation reports produced by Indonesia's Anti-Monopoly Commission (KPPU).
After a probe that lasted for the maximum 120 days allowed, a KPPU team concluded that the Singapore investment company has violated Indonesia's anti-monopoly law.
Temasek Holdings was found to have done so through its subsidiaries' shareholdings in two of Indonesia's largest mobile telecommunication operators.
Temasek's subsidiaries own a 42 percent stake in Indosat and a 35 percent stake in Telkomsel.
Mohammad Iqbal, Head of Indonesian Commission for the Supervision of Business Competition, said: "There's evidence to prove that the process of cross-ownership took place after the divestment of Indosat to Temasek Group. This created unhealthy competition."
Indosat and Telekomsel dominate Indonesia's mobile telecom sector, where eight other players compete in one of the region's most lucrative markets worth US$5 billion.
Temasek Holdings has denied the charges of cross-ownership, maintaining that its subsidiaries have their own board of directors who make their own operational decisions.
It has also denied any involvement in price fixing for mobile phone charges, pointing out that Telkomsel's majority shareholder is the Indonesian government.
Temasek's legal counsel reiterated that all claims against the company are baseless and without merit.
He said Temasek intends to vigorously defend its legal rights at all opportunities and in all available legal forums.
KPPU's findings have been submitted to a five-member independent council that will deliver a judgement.
"The council has given the findings of the extended investigation to the party concerned so that it can inspect the documents, give its views and enter its defence," said Mohammad Iqbal.
The council threw out a number of cases in the past after the companies involved entered their defence.
But should it rule against Temasek, it can impose a fine on the Singapore firm, instruct it to end unfair practices, and pay restitution for any losses caused. If that happens, Temasek can still appeal to the Indonesian courts.
The council is expected to deliver its verdict next month in a case that many experts said lacks clear-cut evidence.
International investors are watching the case closely, and a guilty verdict, the experts said, would shake investors' confidence and raise doubts about Jakarta's commitment to protecting foreign investments even as the country tries to woo more new ones to fuel the economy.
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looks like another honest mistake claim in the line up again...
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The lee family thought they are invincible ma .
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just another few billion dollars only. kpkb
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ya lor ya lorOriginally posted by Lin Yu:just another few billion dollars only. kpkb 
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Goes to prove that the P4P government can only conduct business (to make supernormal profits) when they monopolize the market. Alot like Singtel and Starhub and maybe M1 in Singapore, where they control all the companies like one big company. Price competition is just an illusion.
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let's see how they defend themselves in a foreign land.
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They never study properly before invest in other country, they are not smart ppl, use our money any how invest, interest give us the lowest, I lost alot in DBS SwingOriginally posted by alwaysdisturbed:let's see how they defend themselves in a foreign land. -
MDA has passed a law requiring all buildings to provide automatically facilities and even power supply to allow Tecommunication companies like Singtel or Starhub to install their fixed lines within the building without charge or rentals.
However existing GLCs like Singtel is exempted from such sharing of facilities. It has prevented others like Starhub or M1 to share their manholes, trunking or cabling for such installations.
Is such an exemption a conflict of interest under the Telecommunication Act. Why allow Singtel to enjoy monopoly when the Act requires buildings to provide free access of such services?
DBS is also seen to be protected with privileges like closing of existing banks to give it the monopoly. Now DBS is using such monopoly to charge higher service charges which are followed by all other banks as expected.
SBS is enjoying all the monopoly power to increase their fares even in bad times to increase profits (not avoid losses due to higher wages or oil prices)
When is there going to be a government without so many conflicts of interests and real check on such monopolies to lower costs of living or doing business?
So now it is time for Singtel and Temasek to prove their monopoly over the telecommunication acquisitions in another country are right commercial decisions and not anti-competition without the protection by their own government in the acquisitions of Tekomsel. -
wah.. good report... just change the name involved and can use it in sg already....can save money...
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A First World Government - leading a self-proclaimed First World Country that is accustomed to monopolistic dominance in politics and economics - is now being taught by a Third World Government the DEMOCRATIC process.
The repeated revelation of Temasek's ineptitude must surely be educating to everyone except to Temasek's governors.
From Thailand to Indonesia, from India to China - the repeated exposure to high risk investments that result in huge losses surely reveals the callousness of the leadership's over whelming arrogance that they will never be held to public accounting in Singapore - where their over-riding political power dominate all civil, political and judicial spheres of governance.
There will be many more other independent commissions that will find Temasek's presence to be obnoxious in the manner that it dominates and ensure its own success.
Besides the present Indonesian findings, Thailand's investigation revealed the amateurish deceit that laid the groundwork for Temasek's total control of Shin Corp - by way of proxies - that ignored Thai Laws on foreign ownership of Public Listed Companies in Thailand.
The MIW appointees in Temasek Holdings have been too familiar with the Singapore environment, and believe themselves to be able to ride rough shod over other citizens, in the same manner that they ride rough shod over Singaporeans.
Too bad for Temasek that it had to be Indonesia and Thailand to expose the Singapore amateurs at the helm of Temasek. -
I think there's far too much bad media on Temasek recently.
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U think the report is true based on ur opinion?Originally posted by macabresg:I think there's far too much bad media on Temasek recently. -
temasek has to finally wake up its idea.Originally posted by macabresg:I think there's far too much bad media on Temasek recently. -
Mm lee has already acknowledged he has been fcked by the talents who had used our govt scholarships as stepping stones to go west.
He has misjudged alot of things. In time it will be revealed one by one.
Time will tell that temasek's methods of doing business is also fcked up.
It will be fun to monitor it's latest investment in China Eastern Airlines. -
After all, it is true when some of the PRC did make use of here as stepping stone to other countries. Anyway the figure never revealed how manyOriginally posted by googoomuck:Mm lee has already acknowledged he has been fcked by the talents who had used our govt scholarships as stepping stones to go west.
He has misjudged alot of things. In time it will be revealed one by one.
Time will tell that temasek's methods of doing business is also fcked up.
It will be fun to monitor it's latest investment in China Eastern Airlines.
PRC students left for other countries after getting PR? -
Dun like that lah, let them wakie wakie themselves lah. Dun let the MAJORITY wakie wakie them lah. They got no wake up meh? they super world record wan leh. Even more bombastic than Europe leh. they no Mediocre wan leh he said.Originally posted by alwaysdisturbed:temasek has to finally wake up its idea. -
I hope not. But first we have Shin Corp now this. Similar cases. Won't you feel anything strange about it?Originally posted by will4:U think the report is true based on ur opinion? -
Yes. Thailand and Indonesia try to play punk with us to mask their domestic issuesOriginally posted by macabresg:I hope not. But first we have Shin Corp now this. Similar cases. Won't you feel anything strange about it? but after a while all become brothers again -
the many billions of dollars lost will possibly result later withdrawel in your CPF money. maybe also in the next election there is less freebies. and possibly GST to 9%. all these arent pain to the ruling party coz they earn millions. only us the heartlanders have to suffer!
anyone watch the movie " downfall" about hitler last days in bunkers.
goebbels say, " the germans ppl have only themselves to blame, coz they give us the mandate". welll, we should take the blame for the next 3-4 yrs. -
How would a paper loss of 1-2% of a portfolio do that ?Originally posted by reyes:the many billions of dollars lost will possibly result later withdrawel in your CPF money. maybe also in the next election there is less freebies. and possibly GST to 9%. all these arent pain to the ruling party coz they earn millions. only us the heartlanders have to suffer!
anyone watch the movie " downfall" about hitler last days in bunkers.
goebbels say, " the germans ppl have only themselves to blame, coz they give us the mandate". welll, we should take the blame for the next 3-4 yrs. -
Wait wait wait....I didn't get to vote in the last GE.Originally posted by reyes:the many billions of dollars lost will possibly result later withdrawel in your CPF money. maybe also in the next election there is less freebies. and possibly GST to 9%. all these arent pain to the ruling party coz they earn millions. only us the heartlanders have to suffer!
anyone watch the movie " downfall" about hitler last days in bunkers.
goebbels say, " the germans ppl have only themselves to blame, coz they give us the mandate". welll, we should take the blame for the next 3-4 yrs.
I'm not one of the 66.6 percent voters.
I won't eat humble pie.