Jun 25, 2011

Harry Sasongko urged to be replaced

The Ministry of State-Owned Enterprises, as minority shareholder in PT Indosat Tbk (ISAT), has proposed to replace President Director Harry Sasongko Tirtotjondro and add one new director to improve performance of Indonesia's second largest cellular operator by subscribers.
"We are proposing to renew the board of directors at Indosat. If it is possible, president director should be replaced. Qatar Telecom [controlling shareholder] has informed positive progress on debt payment. But, Indosat's performance remains slow," said Mustafa Abubakar, Minister of State-Owned Enterprises as quoted by Bisnis Indonesia today.
According to Mustafa, the MSOE's intention to replace Harry Sasongko has been formally proposed to Indosat President Commissioner Abdullah Mohammed S.A. Al Thani.
Rp6.5 trillion Capex 
Indosat plans to spend Rp6.5 trillion capital expenditure to develop cellular business. It will be bankrolled by internally cash flow of Rp868 billion.
"We have free cash flow from operations, hence we will fulfill the capex from internally generated cash," he said after shareholders' meeting yesterday.
About 80% of the capex will be used to modernize and add networking in Jabodetabek and Kalimantan. The remaining will be utilized to develop fiber optic and satellite business.
Harry said the operator is also planning to redeem US$220 million debt using the internally generated cash flow.

Disclosure: No position at the stock mentioned above.

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