It is very important to keep credibility in business aspect."
Jakarta (ANTARA News) - Verdict on the former President Director of PT Indosat Mega Media (IM2) in a corruption case over 3G cooperation has lessened foreign investors` confidence, the company`s official has said.

"The verdict would have an impact against international business, and they question about the legal certainty on telecommunication companies in Indonesia," said President Director & CEO of PT Indosat Tbk., Alexander Rusli here on Thursday.

In a court session on Monday (July 8, 2013) judges sentenced former IM2 president director Indar Atmanto to four years in jail and also fined him Rp200 million or a three months more in jail for failing to pay the fine.

The court`s verdict on IM2 and Indar Atmanto was given based on charges of misusing of 3G/High Speed Downlink Packet Access (HSDPA) owned by PT Indosat Tbk as the main company and IM2 as its subsidiary through a cooperation contract.

According to Alexander, one fifth of the company`s revenue amounting Rp23 trillion constitutes international business.

Foreign parties (investors) have a right whether or not to invest in the country.

"They always raise question whether or not the contract would be valid," he disclosed.

Relating to such case, he said, many contracts have to be postponed, including a corporate partner which will invite an investor in the telecommunication field with cooperation value worth US$300 million dollar, he disclosed.

"It is very important to keep credibility in business aspect," Alexander explained. The IM2 was reported misusing the frequency and evading taxes.

Meanwhile, PT Indosat`s Group Head of Regulatory Risargati said at a press conference here on Tuesday PT Indosat-IM2 has a week to appeal the ruling.

"We will fight until the end and use every legal avenue to make the ruling revoked," said Risargati.

According to Risargati, judges did not mention any actions relating to corruption charges made by the prosecutors from the first day of the trial in December 2012.

If the contract was wrong Risargati said the Communications and Information Ministry as a network regulator in Indonesia would issue a statement about it.

(Reporting by Anita Permata Dewi/B003/A014)

Editor: Priyambodo RH
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