Indonesia’s Telkom asks Telkomsel to appeal anti-monopoly ruling

Posted on November 22, 2007  /  0 Comments

Indonesia’s largest telecommunications company, Telekomunikasi Indonesia (Telkom), said Wednesday it has asked unit Telkomsel to appeal a ruling that Telkomsel has broken the anti-monopoly law.Indonesia’s competition watchdog (KPPU) ruled on Monday that Telkomsel, the largest cellphone carrier here, has broken the competition law. The KPPU fined it 25 billion rupiah (2.7 million dollars) and ordered Telkomsel to lower its tariff by a minimum of 15 percent.

“As the majority and controlling shareholder of Telkomsel, Telkom has requested Telkomsel to immediately carry out a legal review in accordance with its own internal processes and governance practices,” Telkom said.

The KPPU also ruled that Singapore’s state-linked investment company Temasek Holdings has broken the law because it controls the two largest cellphone carriers through its indirect holdings in both Telkomsel and Indosat, Telkomsel’s main rival.

Read the full story in AFP

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