Jakarta rally demands telco buyback frpm Temasek

The Jakarta Post, May 24, 2007


JAKARTA: Some 1,000 people, including outspoken politicians, intellectuals, experts and artists, gathered at the Ismail Marzuki Park in Central Jakarta, demanding the government buy back shares now owned by the Singaporean government in PT Indosat and PT Telkomsel.

Singapore Telecommunications (SingTel) has a 35 percent stake in PT Telkomsel, with the remainder of the telco being owned by PT Telkom. Singapore Technologies (ST) Telemedia has a 41.94 percent share in PT Indosat.

Temasek Holdings, the Singaporean government's investment arm, has a majority share in both SingTel and ST Telemedia.

Permadi, an Indonesian Democratic Party of Struggle legislator, said Tuesday evening the government was obliged to buy out the foreign ownership of the domestic telecommunications industry to maintain the nation's sovereignty over its territory and assets.

Partnership executive H.S. Dillon and intellectual Emha Ainun Nadjib warned the government against divesting strategic industries, saying the sales of Indosat and Telkomsel had jeopardized state defense secrets.

"The government should start campaigning for efficiency and continue the war on corruption to prevent it from selling strategic assets to cover the state budget," Dillon said.

Also attending the gathering were Communication and Information Minister Muhammad Nuh, musician Mbah Urip and senior politician Amien Rais.