Indonesian Government Postpones 3G Tender After Telkomsel’s ‘Bankruptcy’ Mess

The Ministry of Communication and Information Technology in Indonesia has decided to postpone the highly-anticipated 3G tender. Though the authorities are concerned about the bizarre Telkomsel ‘bankruptcy’ ruling, it’s not the only reason. According to the head of PR at the ministry, Gatot S. Dewa Broto, talking to Detik:

It’s not entirely correct that the auction was postponed due to the Telkomsel bankruptcy. We are indeed concerned about the condition of Telkomsel. However, since the tender documents and the selection procedure is not 100 percent firm, so we better retreat now than later create problems.

This 3G tender involves five telco companies, including Telkomsel. It’s looking to take both of the 3G blocks available. But Telkomsel is mired in the debt case with PT Prima Jaya Informatika which caused Indonesia’s biggest operator to be declared bankrupt by the Commercial Court of Central Jakarta as it was judged unable to pay the relatively small Rp 5.3 billion (over US$552,000) debt that Prima Jaya says it is due.

The process of selection for the two important blocks of 3G airwaves should have been held at the end of September. The ministry itself must be cautious in its decision to delay the tender of the remaining 3G blocks. The Business Competition Supervisory Commission (KPPU) has begun to oversee the bidding process.

If they postpone it because of Telkomsel, the ministry could be accused of being biased towards Telkomsel – and that could also cause the authorities to be in a breach of competition and monopoly law no. 5/2009. On the reverse side, the ministry does not want to prolong the process as it will lose money from the non-tax state revenue (PNPB). The minister of Communication and Information Technology, Tifatul Sembiring, once said that if the tender were to be postponed, it will threaten the PNBP target for the ministry of Rp 1 trillion (over $104 million) for the year 2012.

[Source: Detik.com]