Temasek Holdings' Indonesia assets may be seized
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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 -
They thought they could get away with what they did in Singapore, by monopolizing the Indonesian telco market and engage in price fixing.
I think the PAP can't be constructive in governance and business that they have to resort such decrepit acts. This is not the first time that PAP managed investments run afoul of the law with anti-competitive practices, most notably SIA and GC.
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I seriously think that the PAP government should reflect on their business practices in Singapore and overseas.
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they run business like they run their political party here - suka suka
but they forgot its not in their homeground so kena ketuk ketuk
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So many schalors, so many mistakes.
Good pay some more.
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velly velly good................hope LKY will die of heart attack from this !!!!
bad news for PAP is good news for me !!!
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It's an honest mistake.
Let's move on.
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...........................WAR!..................
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Originally posted by Hitman 778:
...........................WAR!..................
We will send Hit in the Balls 778 times as suicide bomber to Indonesia. -
try to beat the law in indonesia and end up like this
think the ppl in Temsek are christian and they think they have the power
but they fogot Allah is in indonesia and Jesus has no jurisdiction
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Originally posted by seyKai:
try to beat the law in indonesia and end up like this
think the ppl in Temsek are christian and they think they have the power
but they fogot Allah is in indonesia and Jesus has no jurisdiction
Seemed that this case ought to be scrutinised in the Quran and Bible for a last lasting harmonious and blissful cooperation to take place. Or probably, to the international court of justice and the decision built on the latter would be a sad episode for both countries who have built on a very strong cordial relationships through years of struggles for their citizens
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this one
I think e scholars still thinking ppl operate e way as us in terms of execution of fine and so on.
No wonder why LKY say must train a gp of ppl who can speak Malay..
Seems e younger scholars are lesser street converse than e commoner
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they should just pay and get it over and done it.
sia paid a big fine in US. a dutch giant paid an even bigger fine.
2 million only and they refused to pay?
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$2.2 millions X 8 (companies) = $17.6 millions fine.
"Temasek's wholly-owned unit ST Telemedia has 75 percent of Asia Mobile Holdings, which in turn owns 40 percent of Indosat.
State-owned PT Telekomunikasi Indonesia Tbk holds 65 percent of Telkomsel and the government holds around 14 percent stake in Indosat, including a special share that has a veto right in the shareholders meeting to prevent some corporate actions."
http://in.reuters.com/article/idINJKB00043920071119
"Temasek Holdings is an investment company owned by the government of Singapore, and it has a 55% stake in Singapore Telecom (SingTel), which in turn owns 35% of Indonesia’s Telkomsel."
Termasek held only 40% of Indosat and 35% of Telkomsel.
To monopolise means the ability to fix prices. With only minority stakes in 2 out of total 3 mobile telcos (Indosat, Mobile8, Telkomsel), how temasek monopolize Indonesia"s telco?
http://en.wikipedia.org/wiki/List_of_Indonesia-related_topics#Communications_in_Indonesia
The ungrateful Indons are looking for sugar daddy to fxxk and they found one in small little red dot to screw.
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u r very sure they didnt use other companies to own more shares?
ppl r not stupid u noe only the stupid one thoug others r stupid
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From what I know, the 40% Indosat and 35% Telkomsel are parent holding companies for other smallers companies.
This is a open court verdict and the press is free to dig out fact.
If you claim that they use other companies to own more share, where are your evidence?
Bogeyman and conjucture are easy to project and pick out of thin air on the net. -
Originally posted by 4sg:
From what I know, the 40% Indosat and 35% Telkomsel are parent holding companies for other smallers companies.
This is a open court verdict and the press is free to dig out fact.
If you claim that they use other companies to own more share, where are your evidence?
Bogeyman and conjucture are easy to project and pick out of thin air on the net.
"Temasek also said there was no such thing as the "Temasek Business Group" and its subsidiaries operate independently."MM Lee and PM Lee are 2 persons so wat is the connection?
"Bogeyman and conjucture are easy to project and pick out of thin air on the net"
so do I
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is all this published in the papers??
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Originally posted by seyKai:
"Temasek also said there was no such thing as the "Temasek Business Group" and its subsidiaries operate independently."MM Lee and PM Lee are 2 persons so wat is the connection?
"Bogeyman and conjucture are easy to project and pick out of thin air on the net"
so do I
Most countries would not allow a holding company to trade shares in its smaller subsidaries. I presume this also applies to Indon.
Let's us look at things in the right perpective. If, indeed, Termasek erred by holding excessive (illegal) shares on the smaller companies, would Indon merely charge Termasek for anti-monopoly practice? It is a criminal offence.
Indon would haul some big fish arse to jail! Maybe Ho Ching is too big a fish to haul but certainly they can haul some high ranking executives to jail.
Clearly from the way Indon pressed their charges and from the multi-reports that came out of the press and the court, there was no evidence of illegal share holdings. So why conjucture it?Enough said.
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this world is a big con job and a coin has 2 sides
my comment on stupid ppl was never has bearing on your precious posting
somehow similiar scenario with malaysia on the cpf, railway land and water supply
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Originally posted by 4sg:
Most countries would not allow a holding company to trade shares in its smaller subsidaries. I presume this also applies to Indon.
Let's us look at things in the right perpective. If, indeed, Termasek erred by holding excessive (illegal) shares on the smaller companies, would Indon merely charge Termasek for anti-monopoly practice? It is a criminal offence.
Indon would haul some big fish arse to jail! Maybe Ho Ching is too big a fish to haul but certainly they can haul some high ranking executives to jail.
Clearly from the way Indon pressed their charges and from the multi-reports that came out of the press and the court, there was no evidence of illegal share holdings. So why conjucture it?Enough said.
the issue now is not about right and wrong. the indonesian court has already ruled against temasek. so what else can they do but pay the fine?not happy dont do business there is what they're gonna tell you.
just pay and get it over and done with unless there is another avenue of appeal.
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I am somehow feel that if TH is wrong, pay the fines, assets or whatever, meaning profits drop right. When profit drop, will the pple feel the impact indirectly? Just trying to recoup the loses, hike will be up somewhere. Loses will push to the pple expenses.