PT Indosat cancels investments

JAKARTA (JP): PT Indosat has canceled investments in Southeast Asia and Europe and will review all its investments in other telecommunications companies.

Indosat president Tjahjono Soerjodibroto said yesterday the telecommunication company had won shareholder approval to cancel and review the investments.

Speaking to reporters following the company's shareholders meeting, he said that the shareholders had also approved the proposal to delay the plan to sell some of its stake in satellite and mobile phone operator PT Satelit Palapa Indonesia (Satelindo) citing the poor performance of Satelindo.

"Shareholders see that the stake will be poorly valued because of Satelindo's poor performance,' Tjahjono said.

Indosat holds 7.5 percent of Satelindo's equity and has planned to spin off 6.5 percent.

He said PT Indosat would pay a cash dividend of Rp 247.5 a share, or 49 percent of its earning per share in 1997.

The dividends would be paid on June 23.

Indosat said it booked Rp 640.8 billion in net profit, or Rp 618.8 per share last year, up 22.8 percent from the previous year.

It also said that 59 percent of the remaining profit would be used for investment and 1 percent for reserves for losses. (das)