Singapore’s Temasek Pays $1.7m Indonesia Fine
Singapore state investment firm Temasek Holdings has paid a Rp15-billion (US$1.7 million) fine imposed for breaching anti-competition laws in Indonesia’s telecoms sector.
In a statement on Friday, Temasek confirmed paying the fine imposed by the Business Competition Supervisory Commission, or KPPU.
The commission ruled in November 2007 that Temasek was guilty of anti-competitive behaviour through its stakes in Indonesia’s two biggest domestic mobile-phone operators.
Temasek said it made the payment in compliance with a Supreme Court ruling that upheld the commission’s decision, but maintained it has “never been involved” in any irregularity.
Analysts said Temasek decided to pay the fine to avoid any repercussions non-payment would have had for further investment in Indonesia.
“I think that they clearly are looking to Indonesia as a potentially lucrative market for their investments,” said David Cohen, director of Asian economic forecasting at Action Economics.
He said it was easier for Temasek to pay the fine and “get on with things.”Filed under: Arts & Entertainment