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SINGAPORE : SingTel said it has no plans to divest its businesses in Indonesia.
The regional telco player held a news briefing on Friday to explain why it had filed an appeal against a recent ruling by Indonesia's anti-monopoly agency KPPU.
SingTel said its business there has not been affected by the ongoing legal dispute, as the market in Indonesia continues to flourish.
The telco said it remains firmly committed to its investment in the leading Indonesian mobile operator Telkomsel.
Under the recent ruling by the KPPU, Temasek Holdings was asked to divest either of its stakes in Telkomsel or Indosat.
Temasek holds an indirect interest in Telkomsel through its shareholding in SingTel.
But SingTel said it intends to stay the course and remains unfazed by the ongoing legal dispute.
"It hasn't affected us so far. We will make an appeal and we are confident we will be able to overturn the decision. And if that happens, it's going to be business as usual. We are going to remain committed, we remain optimistic about the Indonesian market," said Lim Chuan Poh, CEO (International), SingTel.
SingTel holds a 35% stake in Telkomsel.
It is denying allegations that it has engaged in anti-competitive practices in Indonesia and said the market there has become fiercely competitive.
Some market watchers agree.
"Wireless communications is the most competitive part of communications everywhere in the world and Indonesia is no exception. Look at Indonesia's churn rate - that's the rate at which customers move from one carrier to another. I think the number is 8.7% per month and that is very, very strong competition," said William Taylor, Senior Vice President, NERA, Economic Consulting.
Last year alone, the number of telcos in Indonesia jumped from 6 to 10, and call rates are facing a downward push.
Telkomsel has seen a 46% drop in average revenue per minute over the last three years.
SingTel believes that it has a strong case against the KPPU and said it has always conducted its business according to law.
The Indonesian telecoms market is one of the fastest growing and SingTel said Telkomsel will be releasing new product and services to stay ahead of the competition.
- AFP /ls
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