Indonesia is not boycotting Amdocs Ltd. (NYSE: DOX), but for the wrong reasons. Website "Indonesia Today" reports that Amdocs will be allowed to participate in a tender for the supply of a billing system for PT Telkomunikasi Selular (Telkomsel), a subsidiary of PT Telkomunikasi Indonesia, after the US Ambassador informed Indonesia's Minister for Communications and Information Technology that Amdocs is a US company.
Although Amdocs is run by Israelis and is considered an Israeli company, it is registered in the Channel Islands and headquartered in St. Louis, Missouri. "Indonesia Today" quotes Minister for Communications and Information Technology Tifatul Sembiring as saying, "I have received clarification from the US Embassy." Tifatul is a member of the Progressive Justice Party, a conservative Islamic party known for its anti-Israel stance.
Telkomsel is Indonesia's largest mobile operator, with more than 80 million subscribers. Two weeks ago, media reports claimed that Amdocs would not be allowed to participate in the tender. A Ministry for Communications spokesman said, "We will investigate the involvement of Israeli-affiliated companies in Indonesia's telecommunications industry." He added that the government would impose sanctions on local companies found to be breaking the law.
Amdocs's share closed at $28.53 on Thursday, giving a market cap of $5.87 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2010
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