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