Telkom needs extension from SEC

The Jakarta Post, Jakarta

State-owned telecommunications company PT Telkom announced that it had submitted a proposal to the United States Securities and Exchange Commission (SEC) for a 15-day extension in filing its 2004 audited financial account.

The country's largest telecommunications firm said in a statement over the weekend that the decision was taken following its failure to meet a June 30 deadline for submitting its accounts based on the SEC standards.

According to the statement, the company will need more time because it is still answering the watchdog's queries on the 2003 report as well as working with its advisors to complete the preparation and review of the 2004 accounts.

However, Telkom indicated the possibility that it might even fail to submit the account within the extended deadline.

The Bandung-based company is required to submit its accounts to the SEC since its American depositary receipts are traded on the New York Stock Exchange.

The SEC has demanded that Telkom review the so-called form 20- F in the company's 2003 account in order to enable KPMG, its auditor for the 2004 financial report, to eligibly include the company's 2003 account in the latest financial report.

Problems with Telkom's financial reports emerged when the SEC rejected Telkom's 2002 financial account as it did not recognize the company's initial auditor for the account. The company later appointed PricewaterhouseCoopers to reaudit the report.

Due to the reauditing, Telkom had to revise its 2002 financial report to incorporate a 3.7 percent decline in its consolidated net profit and negative adjustments to its 2002 and 2001 profits.

The company was also late in publishing its 2003 audited earnings because of the previous delays.

The government owns 51 percent of Telkom, with the remaining 49 percent held by public investors.