Jakarta ignores request on telco vote

Telkom and Indosat shareholders will vote Thursday on a $1.5 billion deal

JAKARTA, Indonesia -- Shareholder meetings of two Indonesian state-owned phone operators will go ahead on Thursday despite parliament's request to postpone the gatherings.

Chief economics minister Rizal Ramli said the meetings would take place as scheduled.

Minority public shareholders will vote Thursday on a $1.5 billion deal between PT Telekomunikasi Indonesia (Telkom) and PT Indosat that would end their crossholdings in several companies.

That will allow the two telecoms giants to expand their telecommunications businesses and lift some of the uncertainty hobbling the lucrative sector.

"The government decided to go ahead with the shareholder meetings because they are about two big companies," chief economics minister Rizal Ramli told reporters.

MPs sought postponement

He made the comments after meeting Transport Minister Agum Gumelar, officials from the Finance Ministry and worker representatives from both companies.

MPs have asked the government to postpone the meetings because parliament had not been consulted over the deal and rising pressure from Telkom workers.

Ramli dismissed the concerns.

"How can a shareholder's meeting be controlled by parliament?" he said.

In Wednesday trading on the Jakarta Stock Exchange, Telkom was down two percent at 2,450 rupiah and Indosat was down 1.75 percent to 8,400. The market index was down 1.36 percent at 367.91 points.

Reuters contributed to this report.

PT Telkom
PT Indosat

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