Government plans to sell another 8% in Telkom<\/p>\n
JAKARTA (JP): The government will sell another 8 percent of
\nits shares in publicly listed telecommunications company PT
\nTelkom, company president Muhammad Nazif said on Monday.<\/p>\n
The newly appointed Nazif did not mention the time frame of
\nthe divestment plan, saying the agenda would be discussed with
\nthe Office of the State Minister of Investment and State
\nEnterprises Development.<\/p>\n
\"The stocks are likely to be sold through the New York and
\nLondon stock exchanges,\" he said after he and the president of
\nthe other state owned telecommunications company, PT Indosat, met
\nwith President Abdurrahman Wahid.<\/p>\n
Nazif and Indosat president Hari Kartana reported to the
\nPresident the latest development in the country's
\ntelecommunications sector on the forthcoming Indonesian
\nTelecommunications Media and Information Technology Conference
\nand Exhibition.<\/p>\n
The government currently owns a 65 percent stake in Telkom
\nwhile the remaining 45 percent is owned by the investing public.<\/p>\n
The government sold 9.62 percent of its stakes in Telkom at Rp
\n3,650 per share in May last year to foreign institutional
\ninvestors, in which it raised Rp 3.2 trillion, reducing its stake
\nin the company to the present level.<\/p>\n
Telkom recently reported a 1999 consolidated net income of Rp
\n2.17 trillion, a turnaround from a net loss of Rp 1.16 trillion
\nin 1998.<\/p>\n
The company currently holds a monopoly to provide domestic
\nfixed line telecommunications services nationwide until 2010 and
\ndomestic long distance services until 2005.<\/p>\n
Nazif said Telkom had not planned to increase its telephone
\nrates this year.<\/p>\n
\"There will be no rate increase at least until the end of this
\nyear,\" he said.<\/p>\n
Telkom, which had total assets of Rp 6.61 trillion as of
\nDecember 1999, is listed on the Jakarta, New York and London
\nstock exchanges.<\/p>\n
Meanwhile, the Indosat president said his company expected to
\nearn Rp 2 trillion (US$253 million) in net profit this year, as
\nagainst Rp 1.37 trillion gained last year.<\/p>\n
\"In order to achieve the target, we will increase our
\noperating efficiency and explore the possibilities of getting a
\nforeign strategic partner,\" Hari said.<\/p>\n
Indosat reported last week its first quarter net profit of
\nthis year was Rp 433.8 billion, reflecting an increase of 16
\npercent from Rp 374.1 billion in the corresponding period last
\nyear.<\/p>\n
Indosat and its subsidiary PT Satelindo currently hold the
\nexclusive right to provide international telecommunications
\nservices until 2004.<\/p>\n
The company is listed on the Jakarta and Surabaya stock
\nexchanges, while its American Depository Shares (ADS) are listed
\non the New York Stock Exchange. (prb\/cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-plans-to-sell-another-8-in-telkom-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}