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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

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

Louis T. Wells (Contributor Webpage)

Oxford University Press

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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