JAKARTA (Yosefardi) – The Business Competition Supervisory Commission (KPPU) has yet approved the merger of PT XL Axiata Tbk (EXCL) and PT Axis Telekom Indonesia.
KPPU is still concern on potential monopoly practice after the consolidation of this 2 telecommunication companies, as the merger will make XL Axiata a substantially bigger player than Indosat (ISAT).
EXCL had acquired 95% Axis shares for a cash consideration of US$100, but EXCL will procure the repayment of Axis’ debts of around US$865 million.
Heru Sutadi, executive director of ICT Institute, said the concern of KPPU over XL-Axis merger is not relevant with the consolidation agenda for telecommunication industry.
Currently, there are some 11 telecommunication operators but only Trikomsel and XL Axiata posted a profit. Heru said Indonesia market would be only proper for maximum 5 operators, then the merger or consolidation is an important tools.