GOVT SUPPORTS INDOSAT SHARES' SALE TO QATAR TELECOM

Jakarta, June 9 (ANTARA) - The Indonesian government supports Qatar Telecom's (Qtel)'s move to buy the 40.8 percent stake of Asia Mobile Holdings (a joint venture between Qtel and ST Telemedia, a subsidiary of Singapore's Temasek Holding) in PT Indosat Tbk, State Enterprises Minister Sofyan Djalil said. "To the government, it also does not matter who the buyer of Indosat shares is. In terms of investment climate, it (the transaction) is good," Djalil said here Monday after receiving the chairman of the Qatar Telecom Group, Sheikh Abdullah Al Thani. He said the sales and purchase agreement (SPA) on the Indosat shares would be the same as that under which STT acquired Indosat shares in 2003. "The SPA with Qtel will be the same as when STT bought Indosat shares and also requires the position of presdeint director to be filled by an Indonesian. They (Qtel) have also expressed their commitment to expanding Indosat's business," he added. Earlier, last Friday, Qtel announced it had bought 40.8 percent of PT Indosat shares through Asian Mobile Holding which in STT's structure is the owner of Indonesia Communication Ltd (ICL), a stakeholder in Indosat. Under the agreement, Qtel paid S$2.4 billion in cash for the shares or some Rp16.74 trillion. Meanwhile, the chairman of Qatar Telecom Group, Sheikh Abdullah Al Thani said, the transaction showed the group's commitment to developing the telecommunication infrastructure in Indonesia. But Al Thani declined to give details on a possible change in Indosat's management. "It (the transaction) has been finalised. Now we are waiting for the Supreme Court's decision," he said. The Commission for Supervision of Business Competition (KPPU) aomw time ago tly declared Temasek guilty of violating Indonesia's; law against monopolies and ordered the Singaporean company to divest its shares in Indosat or in Telkomsel. Temasek indirectly held 35 percent of shares in Telkomsel through ownership of 56 percent of shares in Singapore telecommunications Ltd (Singtel). As the Central Jakarta Court had endorsed the commission's ruling, Temasek filed an appeal with the Supreme Court. Djalil said, Qtel obviously realized the condition that it might face after it had bought the shares in Indosat. "I cannot comment in this matter. As far as I know, the court's as well as KKPU's decisions have not come into effect yet. The transaction has been made and any legal and business risks will be borne by Qtel," he said. The minister also said the government did not have a preferential right to buy Indosat shares. "We need fresh money but we don't want to sell our shares in Indosat," he added. The government's stand on Qtel's investment was part of its efforts to bring in fresh funds from the Middle East, he said. "We are giving Middle Eastern companies the opportunity to invest in Indonesia in the way as Malaysia and Singapore have brought in capital from the Middle East," he said.