Indonesia's Attorney General's office (AGO) is reportedly probing cellular operator PT Indosat over allegations of abuse of spectrum resources.
The AGO is investigating claims that Indosat has deprived the government of some 3.8 trillion rupiah ($418 million) in tax revenue by shuffling spectrum to an operating company, Jakarta Globereported.
Telecom consumers' group KTI has claimed that Indosat caused the alleged losses by handing wireless broadband spectrum to subsidiary Indosat Mega Media (IM2).
In Indonesia, the tax rate for publicly-listed companies such as Indosat is higher than the rate for private entities such as IM2.
KTI argues that IM2 should have applied for spectrum independently under existing regulations.
Indosat has denied the allegations, telling the Globe that IM2's wireless broadband service complies with all current laws and regulations.
PT Indosat is Indonesia's third largest mobile operator. It offers a range of wireless, fixed and satellite services.
Last week, the operator signed a deal with Dimension Data Indonesia to jointly offer end-to-end cloud computing services. And in October, the company concluded Indonesia's first LTE trial on the 1800-MHz band.