Govt to press ahead with plan to buy back Indosat shares

Govt to press ahead with plan to buy back Indosat shares

The Jakarta Post, Jakarta

The government will continue with its plan to acquire more shares
in the country's second largest telecommunications firm PT
Indonesian Satellite (Indosat), a minister says.

State Minister for State Enterprises Sugiharto said on Tuesday
that he already had informal discussions with representatives of
Singapore Technologies Telemedia (STT), which controls most of
Indosat's shares, about the government's plan.

"Indonesia and Singapore have a protected investment agreement
that we should respect. Therefore, we are looking for a win-win
solution to strengthen the government's position at the company,"
he said after presiding over a telecommunications investment and
partnership forum here.

Indosat, which is listed on the New York, Jakarta and Surabaya
Stock Exchanges, is partially owned by STT with 41.01 percent
shares and the government with 14.67 percent. The public owns the
remaining 44.32 percent.

The government sold 41.94 percent of its stake in the company
to STT, through Indonesia Communications Ltd., for about US$631
million in 2002.

Sugiharto said the government would like to have more
domination in the company, considering that Indonesians already
are the majority on the board of directors.

For that purpose, the minister said he was formulating a plan
to see through the government's intention on a "win-win basis"
settlement with other shareholders.

At present, five of the nine Indosat directors are Indonesians
and it is presided over by Hasnul Suhaimi, Indosat's former
director for consumer marketing.

However, Sugiharto refused to mention how many Indosat shares
the government would like to acquire.

"It is a publicly listed company, I should respect that. I
cannot mention the percentage of shares that the government will
acquire as it will affect the share price on the market. Worse
still, I could be accused of insider trading," he said. (006)