SingTel associate declared broke
Play
Singtel's Indonesian mobile associate has been declared bankrupt with debts of $680,000 Singapore dollars (Bt17 million), despite having more than US$6 billion in assets.
The Jakarta Commercial Court made the ruling against PT Telekomunikasi Selular (Telkomsel) last week after former vendor PT Prima Jaya Informatika filed a bankruptcy order against it. Indonesian law states that firms that are late in paying their debts to more than two companies are considered bankrupt.
Prima Jaya showed that in addition to owing it 5.3 billion rupiah (US$554,000), Telkomsel also owed content provider Extent Media about 40 billion rupiah. Telkomsel said it is filing an appeal against the decision today.
A SingTel spokesman said that it supports Telkomsel’s decision to appeal, adding: “Telkomsel is a financially strong company, with net assets of 35 trillion rupiah or US$3.8 billion” as of June 30.
SingTel owns 35 per cent of Telkomsel, while state-owned Indonesian firm PT Telkom holds the other 65 per cent.
