State-controlled PT Telekomunikasi Indonesia’s (TLKM.JK) plan to buy back Singapore Telecommunications’ (STEL.SI) 35% stake in its mobile unit PT Telkomsel will not go ahead, said Indonesia’s state enterprises minister Dahlan Iskan on Thursday, reported Reuters.

The plan to buy back the stake, initiated by the government and approved by Telkom’s shareholders in their annual meeting in May, came as Telkom sought greater influence over Telkomsel, Iskan said.

“It will not happen... SingTel doesn’t want to sell it given the opportunities in Indonesia,” Iskan told Reuters in an interview.

 

Iskan said Telkom still wants to revise a shareholder agreement with SingTel that he said currently gives SingTel approval over all major decision-making, despite it owning a minority stake. Iskan said the government wanted to make the agreement “fair” and Telkom will add more directors onto Telkomsel’s board.

 

Telkom has struggled to boost profits in a once-fast growing mobile market that is now seeing heated competition in Southeast Asia’s largest economy.