SingTel's associate declared broke despite $7b assets
Telkomsel falls foul of 'outdated' Indonesian law on late debt payment
Singtel's Indonesian mobile associate has been declared bankrupt with debts of S$680,000, despite having more than US$6 billion (S$7.35 billion) in assets.
The Jakarta Commercial Court made the ruling against PT Telekomunikasi Selular (Telkomsel) last week after former vendor PT Prima Jaya Informatika filed a bankruptcy order against it.
Indonesian law states that firms that are late in paying their debts to more than two companies are considered bankrupt.
Prima Jaya showed that in addition to owing it 5.3 billion rupiah (S$680,000), Telkomsel also owed content provider Extent Media about 40 billion rupiah.