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