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SINGAPORE: Temasek Holdings said it will challenge the ruling by Indonesia's anti-monopoly watchdog in an international court, if necessary.
Indonesia's Commission for the Supervision of Business Competition, or KPPU, ruled on Monday that Temasek violated the country's competition law.
But Temasek lawyers said they are prepared to exhaust all legal avenues to prove their case. In the worst case scenario, the legal process could take a few years.
Temasek Holdings' opinion of the KPPU charges and findings is that "it defies logic".
Indonesia's anti-monopoly agency began investigating Temasek in 2006 when an Indonesian labour union filed a complaint, alleging that Temasek violated anti-monopoly laws.
Although the union eventually withdrew the complaint, the KPPU continued its investigations.
Temasek will file its appeal against the KPPU ruling within 14 days.
The first immediate appeal would go through Jakarta's District Court, which has 30 days to decide the outcome. The grounds of the appeal is that the KPPU has no jurisdiction over Temasek in the first place.
Davinder Singh, lawyer for Temasek Holdings, said: "Temasek is not an investor in the telco sector in Indonesia. Temasek is outside Indonesia, so they've had to find a concept to bring Temasek within its fold.
"And what they've done is create this concept of the Temasek Business Group using a legal doctrine called the single economic unit, or entity." However, Mr Davinder said Temasek Holdings does not fit into that definition.
"I would conclude that they (KPPU) misinterpreted Indonesian law," said Freshfields Bruckhaus Deringer's competition law expert, Dr Frank Montag.
If Indonesia's District Court rules in favour of the KPPU, Temasek will then appeal to the Supreme Court, which also has 30 days to make a ruling.
If both rounds of legal appeals fail in Indonesia, Temasek said it reserves the right to bring its case to international arbitration.
"I think the judiciary should take into consideration that the judgement in this case would affect the investment climate in Indonesia. I don't think the judiciary would like to worsen the investment climate in Indonesia," said Dr Todung Mulya Lubis, Indonesian counsel for Temasek Holdings.
Lawyers added that in this instance, the legal tussle could drag on for at least a year. - CNA/ac
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