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Telkomsel to Appeal Anti-Monopoly Ruling

November 23, 2007

State phone company Telkom has asked unit Telkomsel to appeal a ruling that Telkomsel has broken the anti-monopoly law.

The competition watchdog (KPPU) ruled on Monday that Telkomsel, the largest cellphone carrier here, has broken the competition law. KPPU fined it Rp25 billion (US$2.7 million) 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. Telkom owns 65 percent of Telkomsel.

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