Govt to delay Telkomsel IPO

Govt to delay Telkomsel IPO

JAKARTA: The Indonesian government said Tuesday it will delay a plan to divest its stake in cellular phone company PT Telekomunikasi Selular Indonesia, or Telkomsel, through an initial public offering (IPO) to next year.

"We won't do the Telkomsel IPO this year," Mahmuddin Yasin, a deputy to the Minister of State Enterprises' Affairs told Dow Jones Newswires.

He said the decision to delay the IPO came after the government received a letter from the management of PT Telekomunikasi Indonesia (Telkom), which owns a 65 percent stake in Telkomsel, asking for more time to prepare for the share sale.

Mahmuddin didn't elaborate.

Last month, the state-owned enterprises ministry told Telkom's management to prepare for the Telkomsel IPO in September or October.

Singapore Telecommunications Ltd., or Singtel, holds the remaining 35 percent stake in Telkomsel. The government holds a 51.2 percent in Telkom. -- Dow Jones