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Temasek to challenge Jakarta court`s verdict
uusjio | May 13, 2008 at 01:40 amby
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Singapore`s state-owned investment firm Temasek Holdings Pte. Ltd is planning to file an appeal with Indonesia`s Supreme Court after its objections against the country`s anti-trust body ruling that it had violated Indonesia`s anti-monopoly law were rejected by the Central Jakarta District Court last week.
Temasek had previously filed an appeal with the Central Jakarta district court over a ruling in November last year by the Business Competition Supervisory Committee (KPPU) that it and its subsidiaries had violated Indonesia`s anti-monopoly law, particularly the law`s articles on cross-ownership.
Lukas, a lawyer for Singapore Technologies Telemedia (STT), one of Temasek`c subsidiaries, said his client would appeal the Central Jakarta district`s verdict, which he said was far from being just and had weakened legal certainty for investment, particularly foreign investment, in Indonesia.
"The verdict is not in line with the basis of cooperation in the protection of investors who have been invited by the Indonesian government," he said.
Lukas said there was a very basic problem as there was no proof that his client controlled majority stakes in Indonesia`s Telkomsel and Indosat. This was clearly stated in the notarial deeds on the Singaporean companies participation in the Indonesian firms.
"The charges against STT must fulfill two aspects, namely control of the majority stake and occupying a dominant position in the market, before STT can be declared a violator of Article 27, Law No. 5/1999," he said.
The Central Jakarta District Court found on Friday last week that Temasek had violated Article 27 of Law No. 5/1999 on Monopolistic and Unsound Business Competition Practices.
"Temasek Holdings violated Article 27 point (1), Law No. 5/1999," Presiding Judge Andriani Nurdin said.
The court ordered the Singaporean state-owned investment firm to sell or reduce its stakes in the two Indonesian mobile-phone-service providers, Telkomsel and Indosat, bringing forward a deadline.
The court also fined Temasek, Telkomsel, Indosat and each of its subsidiaries Rp15 billion (US$1.6 million) and gave Temasek a choice of relinquishing at least 50 percent of its shares in both Telkomsel and Indosat or letting go of all shares in either company within a year.
The KPPU in November last year found Temasek Holdings guilty ...