UPDATE 1-SingTel says no talks on selling stake in Telkomsel

(Adds background)

* SingTel says to remain long-term strategic investor in Indonesia

* Telkom said on Wednesday SingTel is willing to sell the stake

SINGAPORE, Oct 6 (Reuters) - Singapore Telecommunications said on Thursday it was not in talks to sell its 35 percent stake in Indonesia's biggest mobile phone operator Telekomunikasi Selular (Telkomsel) to state-owned Telekomunikasi Indonesia (Telkom) .

The remarks came after Telkom, Indonesia's largest telecommunication firm which owns a 65 percent stake in Telkomsel, said on Wednesday that SingTel is willing to sell its stake to Telkom.

The plan to buy back the stake, initiated by the Indonesian government and approved by shareholders in Telkom's annual meeting on May, comes as Telkom struggles to boost profits in a once-fast growing mobile market that is now seeing stiff competition.

"SingTel has a good partnership with both Telkom and Telkomsel and we continue to be a long term strategic investor in Indonesia. There were no discussions with respect to any sale of our stake in Telkomsel, formal or informal," the company said in an email to Reuters.

SingTel bought the stake in Telkomsel around a decade ago.

Telkomsel had more than 100 million subscribers and contributes the bulk of Telkom's revenue. It is also the biggest pre-tax profit contributor for SingTel outside its home market and Australia.

Before the recent turmoil in financial markets, some analysts were valuing the 35 percent stake in Telkomsel at around $8 billion.

SingTel's shares rose 1.9 percent on Thursday while Telkom shares fell 1.3 percent. (Reporting by Harry Suhartono; Editing by Saeed Azhar and Muralikumar Anantharaman)