Telkom refrains from raising new loans

Telkom refrains from raising new loans

BANDUNG, West Java (JP): The state-owned domestic telecom munications operator PT Telkom, which floated its shares on domestic and overseas stock markets last month, won't be seeking new overseas loans within the next few years.

Telkom's president, Setyanto P. Santosa, said here on Saturday that after being successful in its initial public offering, the company is delaying its plans to raise aid in the next two to five years.

"Telkom's liabilities totaled US41.7 billion as of June 1995, with payback periods ranging between 15 and 20 years," he told reporters during a gathering to celebrate Telkom's initial public offering.

Telkom usually raises financial aid from the World Bank and the Asian Development Bank for its large-scale telecommunications projects throughout the country.

Telkom floated 19 percent of its 9.33 billion shares on the New York, London, Jakarta and Surabaya stock exchanges in Novem ber. The company raised Rp 2.3 trillion (US$1 billion) from the domestic offering and $519.1 million from the overseas offering.

Telkom's finance director, Muljohardjoko, said that from the funds raised domestically, only Rp 1.85 billion went back to his company, while the remainder has gone into the government's coffers. The funds raised from the overseas offering were also handed over to the government.

Meanwhile, the Minister of Tourism, Post and Telecommunications Joop Ave said that Telkom must fulfill its promises about the utilization of the funds raised from the share offerings.

"Telkom is now owned by 350,000 retail investors. Each of them has the same rights to information about Telkom's plans and fund utilization," he said.

The company plans to use 40 percent of the funds to finance its capacity expansion, 40 percent for quality enhancement and the other 20 percent for business development.(icn)