PT Indosat boss resigns over scandal

JAKARTA (JP): President of the publicly listed international telephone operator PT Indosat, Tjahjono Soeryodibroto, tendered his resignation on Thursday following a scandal involving a government dividend worth Rp 112 billion that was revealed a couple of weeks ago.

Indosat's public relations manager, J.B. Basuki, told The Jakarta Post that Tjahjono resigned because he wanted to bear the responsibility for the scandal.

"He resigned on his own wish. He wanted to be morally and professionally responsible for the case," he said.

Indosat's finance director, Herman Simanjuntak, was dismissed last week due to his alleged involvement in the scandal.

A recent audit report made by independent accountants Prasetyo Utomo & Co. found Indosat had delayed the transfer of the dividend to the state treasury and instead kept the funds in a bank.

The report said Herman did not include the Rp 22.5 billion in interest gains from the funds when Indosat later transferred the funds to the government.

Tjahjono would stay on in the job until the company's extraordinary shareholders meeting, set for Oct. 14, formally approves his resignation, the company said in a statement.

Indosat share prices gained Rp 50 to close at Rp 11,100 despite the resignation of the company's boss.

Sofyan Djalil, assistant minister of the State Ministry for the Empowerment of State Enterprises said Tjahyono's resignation was understandable.

"It is (his) professional responsibility ... that he decided to resign after learning his subordinate had failed to handle the government's funds," he said. "Professionalism is an attitude that is always upheld by Pak Tanri (Tanri Abeng, the State Minister of the Empowerment of State Enterprises)."

Tjahjono's replacement will be named at the meeting scheduled for Oct. 14.

Indosat's shares are listed on the Jakarta and Surabaya Stock Exchanges, while its American Depository Shares are listed on the New York Stock Exchange. (udi/rei/cst)