PT Indosat boss resigns over scandal

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)