Telkom to put aside dividens

Telkom to put aside dividens

JAKARTA: PT Telekomunikasi Indonesia said on Monday it is proposing shareholders approve putting aside a smaller 30 percent of 2002 net profit for dividends in order to put more money back into the business.

Shareholders will hold their annual meeting on May 9.

Rochiman Sukarno, head of Telkom's investor relations department, said the proposed figure is lower than the 50 percent that Telkom put aside from its 2001 net profit.

"We need funds to develop our businesses," he said, without offering details.

As of Dec 31., Telkom operated around 7.75 million fixed telephone lines. It plans to develop another 750,000 telephone lines this year, with investment forecast at around Rp 3 trillion.

The government has a 51.19 percent stake in Telkom, and the rest is owned by the public.

Telkom owns a 65 percent stake in Indonesia's leading cellular company PT Telekomunikasi Selular Indonesia, or Telkomsel, which as of Dec. 31, had around six million subscribers. Singapore Telecommunications Limited, or Singtel, holds a 35 percent stake in Telkomsel. -- Dow Jones