Indonesian gov't allows sale of bigger Indosat stake

15 Oct 2008
00:00

In a major policy about-face, the Indonesian government has allowed Qatar Telecom (QTel) to buy up a larger stake in mobile operator Indosat.

Indonesian regulation prevents foreign investors from owning larger than a 49% stake in fixed-line providers, but allows the ownership of up to 65% of mobile operators.

As Indosat is primarily a mobile provider, QTel had argued it should be allowed to own a 65% stake. But because Indostat also has a fixed-line business, the government had previously disallowed a larger investment.

According to the Financial Times, QTel representatives have indicated they will seek to acquire a majority stake as soon as authorities allowed.

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