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The country's anti-monopoly agency KPPU must stand by its
decision on Singapore's business giant Temasek, which has been charged
with violating the anti-monopoly law, a former KPPU commissioner said.
The Business Competition Supervisory Commission's (KPPU's) former
commissioner Pande Silalahi, now a senior economist with the Centre for
Strategic and International Studies (CSIS), said the verdict against
the company should not only be based on strong research and the
existing law but should also be free of any third party influence.
"KPPU must maintain its good reputation and integrity," Pande said in
his comment on the ongoing investigation against Temasek and its
subsidiary Singapore Technologies Telemedia (STT).
"It must also remember that any KPPU decision will influence the
investment climate in the future."
Temasek and its subsidiary STT are charged with violating Indonesia's
business competition laws.
KPPU is scheduled later this month to issue a decision on Temasek's
case.
The competition law says a company is prohibited from having a
controlling stake in a company or a business group in the same business
sector with a market share of more than 50 percent.
The law also says a company is prohibited from having a majority share
in two or more company or business groups in the same field with a
market share of more than 75 percent.
Temasek, STT, Telkomsel and Indosat are also charged with a price
fixing.
Singapore's government-owned investment company indirectly holds shares
in both Telkomsel and Indosat -- respectively 18.9 percent and 30.6
percent.
Telkomsel and Indosat have a combined market share of more than 80
percent in the mobile telecommunication market.
Lawyers representing STT said they strongly denied the allegation and
charged the KPPU chairman Muhammad Iqbal with ethical breaches in
handling the case.
Lawyer Frans H. Winata said recently that Iqbal's comments on the
cross-ownership and price fixing allegations were misleading and could
damage the public's perception of the companies.
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