Telkom to spend Rp 5t to buy back shares

The Jakarta Post, Jakarta

A shareholders' meeting on Wednesday approved plans by PT Telekomunikasi Indonesia (Telkom) to spend Rp 5.25 trillion (US$533 million) to buy back some of its shares traded in the Jakarta and New York bourses within the next 18 months.

"The shareholders have approved a buyback of up to 5 percent of the company's shares traded in the NYSE, of some in the JSX, utilizing the internal fund for Rp 5.25 trillion," president director Arwin Rasyid said on Wednesday after the meeting, referring to the New York and Jakarta stock exchanges.

Telkom director of funds Rinaldi Firmansyah said: "The shares buyback will be done in the 18 months ahead, both traded on JSE and NYSE, while the starting trading date is confidential."

Since 1995, about 42 percent of Telkom's shares have been traded on the JSX, while 7 percent are on the NYSE in the form of American depository receipts. The company's remaining 51 percent stake is still owned by the government.

Telkom has hired Morgan Stanley and PT Danareksa Sekuritas as advisers for the buyback.

Telkom, the country's largest telecom company, will have huge prospects in the sector since it operates in a market where less than 20 percent of the nation's 220 million people have mobile or fixed-line phones.

Telkom shares were up by Rp 50, or 0.8 percent on Wednesday at the JSX to close at Rp 6,050.