Government Disagrees With Telkom's EMSOP
Thursday, 01 March, 2007 | 16:43 WIB

TEMPO Interactive, Jakarta: The government disagrees with PT Telekomunikasi Indonesia Tbk.'s (Telkom) plan of implementing a program to offer shares to employees and the management board (EMSOP).

In an Extraordinary General Meeting (EGM) yesterday (28/2), the government as Telkom's majority shareholder asked the commissioners to reconsider the advantages of EMSOP.

The government asked the program's advantages to cover not only Telkom's employees and management board but also all Telkom's employee and subsidiaries.

“The management must also be able to see subsidiaries' performances,” said the government representative in Telkom's EGM, Roes Aryawijaya, in Jakarta, yesterday.

In the beginning, Telkom's management would use more than 51 million shares for the shares offer program to employees and management.

The shares are from Telkom's share buybuck from the Jakarta Stock Exchange, the Surabaya Stock Exchange and the New York Stock Exchange.

Telkom's management has proposed that 51 million shares be sold at five to ten percent cheaper than the market price.

M. Awaluddin, Telkom's spokesperson, said on Monday (26/2) that shares sale is carried out in order to crease harmony within the body of the company.

“It is expected there will be harmony which bothnthe company and the employees want to achieve,” he said. (Koran Tempo, February 27).

During trading on the Jakarta Stock Exchange yesterday, Telkom share's price dropped down by Rp200 to Rp8,900.
The number of shares in transactions was 79.6 million, amounting to Rp703.6 billion.

Wahyudin Fahmi and Desy Sulastri