Kemkominfo: Main Rules For Operator Consolidation Already

INDUSTRY.co.id - Jakarta - The Ministry of Communications and Informatics (Kominfo) stated the rules of the game for consolidation of existing operators to support the implementation of such measures.

"By the rules of the game the laws and regulations of the government are ready to consolidate," said Director General of Resources and Equipment of Post and Information Technology (SDPPI) Ismail in Jakarta, Monday (16/4/2018).

Ismail said of the rules only need to be added to the ministerial regulations only for technical regulations. "There is a need to believe to ensure that the process runs smoothly and follows the ordinance," he said.

Even so, continued Ismail, in principle there is no prohibition to consolidate, provided the approval of the Minister of Communications and Informatics because the frequency is not an asset.

In Indonesia, mergers and acquisitions are regulated in Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition which sees the impact of market domination.

Separately, Director of Resources Management of Kominfo Denny Setiawan said that if consolidation is done, one of the frequencies owned by the operator will not be returned to Kominfo, but will not be combined.

"It will not be refunded, if the acquisition is later for the new one again, given the consolidated unity, either merger or acquisition, the minister's direction is not combined," Denny said.

With consolidation, operators can save on investing, for example, each does not have to buy a base transceiver station (BTS) tower. However, consolidation is essentially impractical and requires only a suitable business approach in the process. (tar)