liquidators Appointed to Settle Telkomsel Debts
Published on: 19th Sep 2012
Note -- this news article is more than a year old.
Following the surprise and controversial decision by the Jakarta Commercial Court to bankrupt the country's largest mobile network, Telkomsel, it has pushed ahead and appointed formal liquidators for the company.
The bankruptcy order was issued last week after the company ended up in technical default to two small companies it is in dispute with - over the sum of just US$560,000.
State Enterprises Minister Dahlan Iskan said that the company is a large one and can afford the lawyers necessary to overturn the bankruptcy order.
The decision has been widely criticized as it does not take into account the company's overall financial strength, nor that as a majority state-owned company it cannot be technically declared bankrupt anyway.
The ruling was also seen as an abuse of the bankruptcy laws which are used by smaller firms to force settlements in disputes to avoid a bankruptcy order if two or more debts are built up.
"A bankruptcy is not about whether a company is able to pay its debts, but more on its willingness to settle them," one of the liquidators, Feri S Samad told local journalists.
The company is itself appealing against the order, and continues to provide services to its 110 million customers.