Impact of Axis-XL Merger for Minister Tifatul

TEMPO.CO, Jakarta - Communications and Information Minister Tifatul Sembiring said the merger-acquisition between PT XL Axiata and PT Axis Telekom would have a positive impact on the state income, not on tax. The income would reach one trillion rupiah.

In the future, the government could receive an additional income of Rp10 trillion from the use of 10 MHz frequency.

"The other impact from the merger and acquisition, the Communications and Information Ministry is specifically reviewing the use of 1,800 MHZ frequency, which amongst others is planned to be gradually used for LTE (long-term evolution)," he said in a written statement, Friday. The development of 1,800 MHz band had become a priority before LTE was launched, according to the minister.

The merger between the two organizations was once speculated as a monopoly. Business Competition Supervisory Commission (KPPU) chairperson, Nawir Messi, said that indication could be seen from the concentration of mobile phone market before and after the acquisition.

However, Minister Tifatul continues to support the acquisition because its nullification would possibly be disadvantageous to the state income of one trillion rupiah. "If the merger was delayed, Axis will go bankrupt. As a result, there is a possibility that the non-tax state revenue (PNBP) will disappear," he said on Dec 11.

GALVAN YUDISTIRA