MyAdhan Blog

Link: Indonesia: Govt allows Qtel to hold 65 pct stake in Indosat

The government has eventually decided to allow Qatar Telecom (Qtel) to hold a maximum of 65 percent stake in the cellular business unit of state telecommunication operator Indosat.

“We have decided that Qtel`s investment in Indosat`s cellular business unit is a maximum of 65 percent pursuant to Presidential Regulation No.77/2007 junction Presidential Regulation No.111/2007 on the negative investment list,” Communication and Information Minister Muhammad Nuh said in a joint press conference with Chairman of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) Fuad Rahmani here on Monday.

Meanwhile, Qtel is allowed to hold a maximum of 45 percent stake in Indosat`s fixed line, including fixed wireless access (FWA). Therefore, the government gave Qtel two years to separate its cellular telecommunication business entities from its fixed line telecommunication business in Indosat, the minister said.

“These will be more or less like Telkom and Telkomsel,” he said referring to state telecommunication operator Telkom and its cellular business unit Telkomsel. The separation of the business entities is important because Qtel holds stake in Indosat which is licenced to provide cellular and fixed line services, he said.

“We have considered everything in a realistic and rational way and come to the conclusion that it will take two years to separate the two business entities,” he said. While the separation of the two business entities is under process, Indosat is required to develop its fixed line business, he said.