Earlier on, Indonesia’s Central Jakarta district court upheld a ruling by KPPU (the nation’s competition watchdog), and ordered Temasek to divest its holdings in either PT Telekomsel or PT Indosat.
KPPU announced in its findings in November 2007 that Temasek was guilty of engaging in monopolistic and anti-competitive behavior in Indonesia’s cellular phone market through stakes in the two telephone operators.
PT Indosat is 41-percent owned by Asia Mobile Holdings (AMH), which is a 75 percent-held subsidiary of ST Telemedia. ST Telemedia is fully owned by Temasek. Temasek indirectly holds 35 percent of PT Telkomsel via its 56-percent owned unit Singapore Telecommunications Ltd (SingTel).
Temasek has argued it “does not own shares in or control either Indosat or Telkomsel, whether directly or indirectly through its subsidiaries.”