New Telkom president to be elected today

JAKARTA (JP): Shareholders of PT Telekomunikasi Indonesia (Telkom) are likely to elect Brig. Gen. Asman Akhir Nasution as the company's new president during their annual meeting today, informed sources said yesterday.

Nasution, an expert adviser to Minister of Tourism, Post and Telecommunications Joop Ave, will replace Setyanto P. Santosa, the current president of PT Telkom, the provider of domestic telecommunications.

If elected, it will be a return for Nasution to the state- owned Telkom, as he served as a director in the company from 1988-1993.

Sources said yesterday that the government had chosen Nasution as Telkom's new top executive formatter during a rehearsal for the annual shareholders' meeting held on Wednesday afternoon.

The annual shareholders' meeting will be the first since Telekom's initial public offering last October.

"Wisnu Askari Marantika, who has been widely reported to replace Setyanto as Telkom's president, has submitted a resignation letter due to his health." The source seemed surprised, as Wisnu had always appeared in very fit condition.

A planned replacement in Telkom has been a source of controversy, as the government was said to have interfered unprofessionally in the company.

The controversy began in late March, when the press received a leaked approval letter from Minister of Finance Mar'ie Muhammad to Joop Ave.

In his letter, Mar'ie agreed to assign Bambang Subianto, a senior official at the Ministry of Finance, to replace Martiono Hadianto as Telkom's chief commissioner. Martiono, 51, was appointed chief commissioner of Telkom last year before its public offering.

The letter also indicated that Setyanto would be replaced by Wisnu, who is currently Telkom's senior executive vice president for engineering.

Analysts said that, except for Martiono, the government will likely retain Rustam Didong, Abdoel Djabar Mangoendihardjo, Daeng Iskandar and Suharto as Telkom's other commissioners. Meanwhile, John Welly and Dadad Kustiwa will also retain their positions as Telkom's directors.

The government has not been able to provide any details as to why it wanted to replace Telkom's executives before their tenures were over.

According to Telkom's prospectus last year, the government stipulates that the board of commissioners' tenures will last until the company's third annual shareholders' meeting in 1998. The board of directors' terms are to expire after the fifth annual meeting in 2000.

Telkom's current boards of commissioners and directors were sworn in by Joop Ave on April 17, 1995, based on a minister of finance decree dated March 15, 1995.

It is normal in Indonesia, however, that executives at state- owned companies are always at the risk of losing their jobs for any behavior against the government's wishes. It is not surprising as well that such a tragedy also happens in Telkom, which is now partly owned by domestic and overseas public investors, the sources said.

Telkom shares, listed on the London and New York Stock Exchanges. would not be affected, due to the government's powerful intervention. Telkom shares closed Rp 50 higher at Rp 3,700 at the Jakarta Stock Exchange on Wednesday. (icn)