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SINGTEL is considering launching a charm offensive in Indonesia to correct some of the misinformation spread about the telco.
The possible public relations strategy would be in conjunction with SingTel's appeal to the Indonesian courts against allegations that it violated anti-competitive laws.
SingTel's chief executive for international operations, Mr Lim Chuan Poh, said the firm will talk to PT Telkom, the key shareholder of Telekomunikasi Selular (Telkomsel), to see how it can correct some of the 'very emotional arguments' such as price-fixing, which have gained ground.
Telkomsel is Indonesia's biggest mobile operator. SingTel owns 35 per cent and PT Telkom the rest.
Mr Lim, who was speaking at a media briefing yesterday, said SingTel had been focusing on its legal strategy up to now, but could perhaps do more on the public relations front.
In November, Indonesian competition watchdog Business Competition Supervisory Commission or KPPU, ruled that Temasek Holdings, Singapore Technologies Telemedia and SingTel had breached competition law. Indonesian law bans firms from holding majority stakes in more than one company within the same industry.
All three companies are appealing the KPPU ruling, noting that the stakes they have do not breach the law.
SingTel, in which Temasek holds a 56 per cent stake, has a 35 per cent stake in Telkomsel. ST Telemedia, which is wholly owned by Temasek, owns a 31 per cent effective stake in Indonesia's second-largest mobile operator, Indonesian Satellite (Indosat).
SingTel's lead counsel, senior partner Sundaresh Menon from the firm of Rajah & Tann, said the figures clearly demonstrate that KPPU's ruling was wrong.
The KPPU also charged that the companies had colluded to fix prices, resulting in artificially high phone bills for Indonesians - the emotional argument Mr Lim referred to.
Research by American consulting group Nera, which was hired by SingTel to study the competitiveness of Indonesia's mobile market, suggests the price-fixing claim is false.
Its survey of 16 countries with similar mobile phone penetration rates and similar-sized economies found that Indonesia's phone rates were the lowest.
Nera also found that over 8 per cent of Indonesian mobile phone users switch operators every month - one of the highest 'churn' rates worldwide.
This was a clear sign that competition was alive and well, said Nera senior vice-president William Taylor.
The District Court of Central Jakarta is expected to hear SingTel's appeal, which was filed on Dec 19, by this month.
Mr Lim, who is confident the KPPU ruling will be overturned, expects a verdict by late February or early March.
chuahh@sph.com.sg
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