Telkom ordered to pay dividends<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government said on Wednesday it would require all publicly
\nlisted state-owned companies, including telecommunication firm PT
\nTelkom, to pay their annual dividend to the state coffers in
\naccordance with the regulations, and warned of sanctions for
\nthose who failed to comply.<\/p>\n
Ministry of Finance Director General of Financial Institutions
\nDarmin Nasution, said that unless the companies could prove they
\nwere having liquidity problems, they should all pay their
\ndividend to the government within one month at the latest after
\nthe company's shareholders' meeting.<\/p>\n
\"That's what the regulations say. Otherwise, a penalty will be
\nimposed on them, such as a monthly fine of two percent of their
\ntotal obligation,\" Darmin said on Wednesday on the sidelines of a
\nmeeting with the House of Representatives Commission IX on
\nfinancial affairs.<\/p>\n
In its annual shareholders' meeting last week, the board of
\ndirectors of the country's largest telecommunication firm asked
\nthe government to allow it to make the dividend payments in two
\ninstallments.<\/p>\n
The issue remained undecided until the end of the meeting.<\/p>\n
The government is supposed to obtain 50 percent of the total
\nprofit recorded by the company last year, which is around Rp
\n2.125 trillion (US$260 million).<\/p>\n
As of last year, the company managed to post a 41.2 percent
\nincrease in its audited consolidated net profit to Rp 4.25
\ntrillion, up from Rp 3.01 trillion in 2000. The company's net
\nincome per share also rose to Rp 421.64 from Rp 298.61.<\/p>\n
Darmin added the huge profits indicated Telkom was by no means
\nin financial difficulties.<\/p>\n
Meanwhile, in last week's meeting, the government rejected the
\ncompany's plan to issue $100 million in bonds as it would raise
\nIndonesia's corporate debts in dollars. It was feared this could
\nadversely affect the rupiah in the future.<\/p>\n
The government also made significant changes to Telkom's
\nboards of directors, on the grounds that they were not capable of
\nrunning the company.<\/p>",
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