Monday, June 27, 2011

Harry stay in Indosat

Harry Sasongko will stay on as president director of PT Indosat Tbk, Indonesia's second largest mobile phone operator by subcribers, at least for the time being, as shareholders voted on Friday to give him the chance to turn the company’s finances around. One of the strong candidate to replace Harry is Danny Buldansyah, former vice president director in PT Bakrie Telecom Tbk. Recently, Danny become executive in Qatar Telecom, majority shareholders in Indosat.

State Enterprises Minister Mustafa Abubakar said on Friday that he wanted to restructure Indosat’s board of directors following mounting debt and its poor performance last year.

At Indosat’s annual meeting, later in the day, shareholders voted to keep Harry on as president director, a position he has held since August 2009. They meeting agreed to replace Peter Kuncewicz, firm’s director of finance, with Curt Stefan Carlsson.

Indosat recently paid IDR1.13 trillion of IDR4.28 trillion in debt due this year. Indosat also paid 50 percent of its 2010 profit as a dividend.

In the first quarter, even as Indosat’s net income surged 63 percent to IDR453.9 billion from a year earlier due to gains in foreign-currency transactions and lower funding costs, its operating revenue rose just 3 percent to IDR4.9 trillion.

Also for the quarter, Indosat recorded 45.7 million customers — the same number of subscribers as the end of 2010.

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