Telkom to refinance $800m foreign debt

Telkom to refinance $800m foreign debt

JAKARTA: State-owned telecommunication firm PT Telekomunikasi
Indonesia (Telkom) said on Wednesday it is planning to refinance
its foreign debt in an effort to reduce foreign exchange losses
due to the fluctuation of the rupiah against the dollar.

"We are now seeking loans from both foreign or local banks to
refinance our total US$800 million debt," Telkom's finance
director Rinaldi Firmansyah told reporters.

At end-June, Telkom's net profit fell 19 percent on year due
mostly to foreign exchange losses. During the first half of this
year, Telkom booked Rp 869.81 billion (Rp 97 million) in foreign
exchange losses due to the weaker rupiah.

Telkom's short-term liabilities as of June 30 were $160
million, while the remaining $640 million was long-term debt.

He said Telkom is also planning to accelerate the repayment of
the debt. -- DJ