Govt approves Telkom bond issue

Govt approves Telkom bond issue

JAKARTA: PT Telekomunikasi Indonesia has obtained government
approval to go ahead with a dollar-denominated bond issue later
this year - a turnaround after rejecting the plan in June.

State Enterprise Minister Laksamana Sukardi confirmed the
government's approval Tuesday.

The government, which owns a 51 percent stake in Telkom, last
month rejected the company's plan to issue between $100 million
and $150 million in bonds in the second half of the year to avoid
debt repayment difficulties in the future.

The domestic telephone operator's revenues are mostly
denominated in rupiah, which created concerns among government
officials that Telkom may face difficulties in repaying its
dollar debt in the future.

It remains unclear why the government has now approved the
plan. -- Dow Jones