Telkom to name auditor this week

Telkom to name auditor this week

JAKARTA: PT Telekomunikasi Indonesia (Telkom) said on Monday it could appoint a new auditor as early as this week in a bid to comply with U.S. Securities & Exchange Commission regulations.

"We expect to name an auditor soon or this week," said Rochiman Sukarno, Telkom's investors relations manager.

The U.S. Securities & Exchange Commission (SEC) last week rejected Telkom's 2002 financial report on the grounds it wasn't audited by a company accredited with the SEC.

The U.S. capital markets watchdog has told Telkom to resubmit the reports by June 30, with an option to extend the deadline to July 15.

Telkom has said it is unlikely to meet the deadline even if it is extended, citing difficulties in finding a suitable auditor.

There is a limited number of SEC-recognized auditing firms in Indonesia, and several of them may not be able to audit Telkom due to a conflict of interest, Telkom said in a statement late Wednesday.

Failure to comply with the SEC's deadline may result in the delisting of Telkom's American Depository Receipts traded on the New York Stock Exchange.

Telkom reported net profit of Rp 8.34 trillion (U$1 billion) last year, almost double the Rp 4.25 trillion the previous year.

Telkom officials have said it didn't expect the new audit to produce different financial results. --Dow Jones