Temasek Holdings, affiliates to pay Rp 15 billion fines each

Singapore-based investment giant Temasek Holdings says it will pay fines to the Indonesian government after the Supreme Court upheld a ruling by the country's antitrust agency that the firm and its nine affiliates, including PT Telekomunikasi Selular (Telkomsel), were guilty of violating anti-monopoly laws.

Temasek Holdings senior managing director Goh Yong Siang reported Tuesday in an emailed statement that his company was disappointed with the Supreme Court's decision, but affirmed its commitment to comply with the country's prevailing regulations.

“As an international investor, Temasek Holding continues to comply with the laws and regulations of Indonesia in its activities in the country and will duly follow up its fine, paying the Business Competition Supervisory Commission without prejudicing its legal position, and reserving all its rights,” he said.

In 2007, the commission ruled that Temasek was guilty of breaching the 1999 Anti-monopoly Law over its dual-ownership of the country’s two largest cellular phone firms — PT Telkomsel and PT Indosat.

The commission ordered Temasek to relinquish its ownership in one of the two companies and, together with its nine affiliates, pay Rp 15 billion (US$1.65 million) each. The company then sold its entire stake in Indosat to Qatar Telecom in a deal worth $ 1.8 billion.