Monday, 12 May 2008

ST Telemedia to Challenge Indonesian Court Ruling

Singapore Technologies Telemedia (ST Telemedia) expressed its utmost disappointment with the ruling passed by the Central Jakarta District Court. ST Telemedia will review all legal avenues to seek redress and vigorously defend its position.

Commenting on the ruling, Lee Theng Kiat, President and Chief Executive Officer of ST Telemedia, said ST Telemedia was invited by the Indonesian Government in 2002 to participate in a transparent bid for the Indosat stake.

"We have fully complied with the strict regulations and guidelines laid out by the Indonesian Government for the divestment process, obtaining the necessary regulatory approvals and meeting the government and statutory requirements," said Theng Kiat.

ST Telemedia claimed that the District Court ruling contradicts the Indonesian Government's privatisation decision in 2002 when it invited domestic and international investors, including ST Telemedia, to take a stake in Indosat to help the company to survive.

Currently, Indosat has transformed itself into a strong and viable competitor in the Indonesian telecommunications market. Its financial standing, management expertise and corporate governance have substantially strengthened. As at the end of 2007, its revenue has increased by about 144 percent from 2002.

With its improved credit ratings, Indosat, which was previously constrained by lenders, was able to access the capital markets to raise fund for its network expansion. Indosat's network coverage has expanded dramatically from just 2,736 BTS in 2002 to over 10,000 BTS across Indonesia in 2007. Its subscriber base has grown from just around 3.5 million to over 24 million customers in 2007.