From Government of Indonesia

Telkom to Invest Rp27.81t in 2007

State telecommunications company PT Telkom said Tuesday (30/1/07) it plans to invest Rp27.81 trillion ($3.1 billion) this year to develop its telecommunication businesses and services.

The company said in a statement that 2007 capital expenditure is 34% larger than last year's Rp20.8 trillion, Dow Jones Newswires reported.

The statement, presented during a session between Telkom's management and legislators, also said that Telkom's 2006 unaudited net profit is estimated at Rp10.8 trillion, up 35% from Rp7.99 trillion a year earlier.

The 2006 unaudited figure includes Rp1.7 trillion accrued for compensation for an early retirement program for 2,000 staff members, which analysts say is aimed at making the company more efficient.

Telkom is expected to announce its 2006 audited earnings in March.

The company also said it plans to sell 51 million shares to its management and employees, via a stock option plan, XFN-Asia reported.

Telkom said it will seek shareholders’ approval for the options plan during a meeting slated for February 22. It wants to use the shares that it purchased via a buyback program for the stock options.

Under the buyback program, lasting until June 21, the company is authorized to gain back not more than 1 billion shares, or 5% of its paid-up share capital. It has so far repurchased 121 million shares.
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