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Making Foreign Investment SafeProperty Rights and National Sovereignty$
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Louis T. Wells and Rafiq Ahmed

Print publication date: 2007

Print ISBN-13: 9780195310627

Published to Oxford Scholarship Online: May 2007

DOI: 10.1093/acprof:oso/9780195310627.001.0001

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 Indosat: A Successful State‐Owned Firm

 Indosat: A Successful State‐Owned Firm

Chapter:
(p.75) 5 Indosat: A Successful State‐Owned Firm
Source:
Making Foreign Investment Safe
Author(s):

Louis T. Wells (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195310627.003.0006

Indosat did not collapse into the poorly run firm that has become the image of state-owned enterprises. On the contrary, it embarked on a bold new mission, invested in maintenance and new capacity, expanded rapidly, kept up with new technologies, and was profitable. Good management and the lack of harmful government intervention played a major role in Indosat's performance, but there was another important factor, and one that casts something of a shadow over the enterprise. An inherited tradition that Indosat chose not to modify in the post-ITT era was the use of monopoly power to charge its customers high prices.

Keywords:   state-owned enterprises, International Telephone and Telegraph, ITT, Indonesia, foreign investment, monopoly

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