Ruling by Indonesia's anti-competition body on Temasek Holdings

Date: 10 January 2011

Parliamentary Question for written answer by Mdm Ho Geok Choo:

To ask the Minister for Finance in view of Temasek's situation with regard to Indonesia's Business Competition Supervisory Commission (KPPU) (a) what is next course of action available for Temasek; and (b) whether Temasek could have been more pro-active and followed up with the Indonesian Supreme Court when it failed to receive official notification of its failed appeal against the KPPU's ruling after waiting for some months.

Reply by Finance Minister Tharman Shanmugaratnam:

1. While Government is the shareholder of Temasek, Temasek operates autonomously and makes its investment decisions on a commercial basis. The Government does not interfere in Temasek's business decisions or actions. This applies to Temasek's investments in Indonesia.

2. There have been recent news reports that the KPPU is considering seizing Temasek's assets in Indonesia for failure to pay its fines, after being found guilty by the KPPU for breaching anti-monopoly laws. To date, the Government understands that Temasek has not received any official notification yet of the result of the Civil Review application to the Indonesian Supreme Court. As for the next course of action, it is a matter for the Board of Temasek and its management to consider, and pursue as part and parcel of Temasek's business decisions.