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The State Enterprises Labor Union Federation (FSP-BUMN)
reported new allegations of unfair tendering procedures against PT
Indosat and PT Telkomsel to the Business Competition Supervisory
Commission (KPPU) on Friday.
Earlier, on Oct. 18, the federation reported the two companies to the
KPPU for having commissioners who also hold top positions in other
companies owned by Indosat and Telkomsel's majority shareholders, in
contravention of the 1999 Monopolies Law.
"We know for a fact that two of Indosat's commissioners, Lee Theng Kiat
and Lim Chuan Poh, still hold top positions in Singapore Technologies
Telemedia (STT), and that Telkomsel's commissioner, Lim Chuan Poh, is
the CEO at Singtel," the federation chairman, F.X. Arief Poyuono, said
at KPPU headquarters Friday.
The government sold its 41.9 percent stake in Indosat to STT in March
2003, leaving the Singaporean company as Indosat's majority shareholder.
STT is owned entirely by the Singapore government's investment vehicle,
Temasek Holdings.
Temasek also owns a 56 percent stake in Singapore Telecommunications
Limited (Singtel), which in turn owns a 35 percent stake in PT
Telkomsel through its subsidiary Singapore Telecom Mobile Pte. Ltd.
About 85 percent of the country's mobile telephone market is controlled
by Telkomsel and Indosat.
Arief said that in its second complaint, the federation had accused the
two companies of engaging in unfair practices in up to 200 tender
competitions.
The federation's lawyer, Dhaniswara Harjon, said the two companies had
violated at least six articles of the 1999 Law, including the
provisions on oligopolies, pricing, agreements with foreign
corporations, market domination, abuse of majority control and
conspiracy.
The complaint was received by the head of the KPPU's investigative
unit, Panggabean, who said an investigation would be commenced Monday
and would last for 60 days before the final investigation report was
submitted to the KPPU board for a final ruling.
When asked to comment on the allegations, Indosat spokesperson Dita
Irawati would only say that it was up to the shareholders to respond to
such matters.
"The allegations seem to be directed at Temasek. Maybe it is they who
should respond," she said.
As of the time of going to press, no response had been received from
Telkomsel following inquiries from The Jakarta Post.
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