Telkom's falling shares may not hurt govt<\/p>\n
Muninggar Sri Saraswati and Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The government downplayed the recent decline in the shares of
\nstate telecommunications company PT Telkom, saying it commonly
\noccurs when a publicly listed state firm deals with a corruption
\ninvestigation because investors get a shock.<\/p>\n
\"The decline is obvious, especially during the early stages of
\nsuch an investigation. But over time, the shares will go up again
\nwhen the investigation becomes clear and the case becomes
\ntransparent. There's nothing to worry about,\" Vice President
\nJusuf Kalla, himself a former businessman, said at his office on
\nWednesday.<\/p>\n
Telkom shares have lost 6.5 percent over the last two trading
\ndays. The shares declined on Wednesday to Rp 5,000 from Rp 5,100
\non Tuesday and from Rp 5,350 on Monday.<\/p>\n
At present, the firm has some 15 percent market capitalization
\nin the domestic bourse -- the largest of any other listed
\ncompany.<\/p>\n
The recent drop in the shares of the country's largest
\ntelecommunications company, in which 51 percent of shares are
\ncontrolled by the government, resulted after the inter-
\ndepartmental anticorruption team revealed on Monday that it would
\nraise the investigation status from inquiry to prosecution.<\/p>\n
The team coordinator Hendarman Supandji said the plan was
\nraised due to an early indication of corruption practices
\nallegedly committed by Telkom management, which has the potential
\nto cause state losses.<\/p>\n
He hinted that his team had investigated graft involving an
\namendment to the joint operating contract with PT Mitra Global
\nTelekomunikasi Indonesia (MGTI), conducted in January 2004.<\/p>\n
The investigation has likely put Telkom's current group of
\nmanagers at risk of dismissal as the government plans to
\nreorganize the firm during its annual shareholders meeting on
\nFriday.<\/p>\n
Kalla said the government has been looking at up to 30
\ncandidates to take over the top post at Telkom and would name one
\non Thursday during a meeting of the government's final assessment
\nteam (TPA).<\/p>\n
The assessment team, directly presided over by President
\nSusilo Bambang Yudhoyono, is tasked with selecting top executives
\nfor state enterprises as well as top posts for the government and
\nmilitary officials.<\/p>\n
Four names -- Telkom's cellular subsidiary PT Telkomsel
\npresident director Kiskenda Suriahadja; former president director
\nof Telkomsel Bajoe Narbito; Telkom's director for human resources
\nand business support Woeryanto Soeradji; and Telkom's former
\nbusiness development director and the creator of the Telkom Flexi
\nservice Garuda Sugardo -- have been tipped as the strongest
\ncandidates for the post.<\/p>",
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"sponsor": "Okusi Associates",
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