PT Indosat cancels investments

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)