Singapore

Temasek Holdings (Temasek) has filed an appeal with the District Court of Central Jakarta today, under the laws of Indonesia, in response to the decision announced by the Commission for the Supervision of Business Competition (KPPU) on 19 November 2007.

Myrna Thomas, Temasek’s Managing Director of Corporate Affairs stated, “The case against Temasek is baseless and totally without merit. We are filing an appeal to demonstrate that there is no basis for the KPPU decision and to ensure that Temasek’s legal rights under the laws of Indonesia are respected at all times.”

Temasek’s Indonesian legal counsel, Todung Mulya Lubis said, “The KPPU has ignored overwhelming evidence that supports Temasek’s defence and has offered no explanation for its disregard of the evidence.”

Temasek has not engaged in any activities in the Indonesian telecommunications market, much less in monopolistic or anti-competitive practices.

Temasek does not own any shares in PT Indosat Tbk (Indosat) and PT Telkomsel (Telkomsel). It does not direct or control the investment and operational decisions of STT or SingTel, much less those of Indosat and Telkomsel. These companies are directed by their own independent board of directors and management.

Furthermore, the Indonesian government approved the investments in Telkomsel and Indosat when they were made several years ago. When asked about the Indosat investment at that time, the KPPU registered no objection to the investment.

Ms Thomas continued, “Telkomsel is controlled by the Indonesian government which also has a golden share in Indosat. How could there have been any monopolistics practices or unfair business conduct under the watchful eye of the Indonesian government?”

Mr Todung added, “We also believe that the KPPU has no legal authority to order the divestment of all the shares in either Indosat or Telkomsel and to curtail the rights of the shareholders by restricting the sale to a maximum of 5% per purchaser.”

Ms Thomas further added, "We are confident that the Indonesian telecommunications market is, and remains, highly competitive and our evidence overwhelmingly supports this position. Temasek Holdings calls for a fair and just decision by the District Court, one that is based on the evidence and merits of the case."

About Temasek Holdings

Incorporated in 1974, Temasek Holdings is an Asia investment firm headquartered in Singapore. Temasek has a multinational staff of 300 people. Supported by affiliates and offices around Asia, it manages a diversified S$164 billion (US$108 billion) portfolio, focused primarily in Asia. Temasek is a shareholder and investor in diverse sectors such as banking & financial services, real estate, transportation & logistics, infrastructure, telecommunications & media, bioscience & healthcare, education, consumer & lifestyle, engineering & technology, as well as energy & resources. Our recent investment strategies center on four themes:

• Transforming Economies
• Thriving Middle Class
• Deepening Comparative Advantages
• Emerging Champions

Temasek’s total shareholder return since inception in 1974 has been more than 18% compounded annually. It has a corporate credit rating of AAA/Aaa by rating agencies Standard & Poor's and Moody's respectively. For further information on Temasek, please visit www.temasekholdings.com.sg.

For media queries, please contact:

Contact for International media:
Daliea Mohamad
Corporate Affairs
Temasek Holdings (Private) Limited
Tel:+65 6828 6641
E-mail: daliea@temasek.com.sg

Contact for Indonesia media:
Abrahm Sihaloho
Weber Shandwick Worldwide
Tel: +62 21 5290 6550 ext 7771
Fax: +62 21 5290 6494
E-mail: asihaloho@webershandwick.com