Faulty Towers

QUESTIONS need to be asked about Telkom's decision to swap part of its stake in Dayamitra Telekomunikasi (Mitratel) for shares in Tower Bersama Infrastructure. This share swap could lead to the state-owned enterprise losing significant potential earnings. If the swap goes aheadpending the decision of the Finance Development Controller (BPKP) and the Attorney General's Officethe government's dividend from Telkom runs the risk of declining.

Telkom will pass on its shares in Mitratel in stages to Tower Bersama as part of the share swap. After the process is complete, Tower Bersama will have full control of Mitratel. As compensation, Telkom will obtain 13.7 percent shares in Tower Bersama. Telkom will have the opportunity to increase its shareholding subject to certain conditions.

November 18, 2014