Telkom refrains from raising new loans<\/p>\n
BANDUNG, West Java (JP): The state-owned domestic telecom
\nmunications operator PT Telkom, which floated its shares on
\ndomestic and overseas stock markets last month, won't be seeking
\nnew overseas loans within the next few years.<\/p>\n
Telkom's president, Setyanto P. Santosa, said here on Saturday
\nthat after being successful in its initial public offering, the
\ncompany is delaying its plans to raise aid in the next two to
\nfive years.<\/p>\n
"Telkom's liabilities totaled US41.7 billion as of June 1995,
\nwith payback periods ranging between 15 and 20 years," he told
\nreporters during a gathering to celebrate Telkom's initial public
\noffering.<\/p>\n
Telkom usually raises financial aid from the World Bank and
\nthe Asian Development Bank for its large-scale telecommunications
\nprojects throughout the country.<\/p>\n
Telkom floated 19 percent of its 9.33 billion shares on the
\nNew York, London, Jakarta and Surabaya stock exchanges in Novem
\nber. The company raised Rp 2.3 trillion (US$1 billion) from the
\ndomestic offering and $519.1 million from the overseas offering.<\/p>\n
Telkom's finance director, Muljohardjoko, said that from the
\nfunds raised domestically, only Rp 1.85 billion went back to his
\ncompany, while the remainder has gone into the government's
\ncoffers. The funds raised from the overseas offering were also
\nhanded over to the government.<\/p>\n
Meanwhile, the Minister of Tourism, Post and
\nTelecommunications Joop Ave said that Telkom must fulfill its
\npromises about the utilization of the funds raised from the share
\nofferings.<\/p>\n
"Telkom is now owned by 350,000 retail investors. Each of them
\nhas the same rights to information about Telkom's plans and fund
\nutilization," he said.<\/p>\n
The company plans to use 40 percent of the funds to finance
\nits capacity expansion, 40 percent for quality enhancement and
\nthe other 20 percent for business development.(icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-refrains-from-raising-new-loans-1447893297",
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