ST Telemedia concerned about allegations

The Straits Times, May 5, 2007


ST TELEMEDIA said in a statement that it 'read with interest and concern' a Koran Tempo report on May 1 regarding discussions between several Indonesian and foreign parties on the government buyback of its shares in Indosat.

In the statement, ST Telemedia also quashed accusations that its involvement has not been good for Indosat.

It said it helped to turn the company's financial position around from one that was 'faced with poor cash flow and mediocre credit rating with limited fund-raising capability'.

Saying that it is aware of the ongoing strong interest by various parties to acquire its shares in Indosat, ST Telemedia also said that it cannot explain the 'continuous media pressure mounted on us in the past few months which had also resulted in frivolous and unsubstantiated accusations'.

'ST Telemedia has always enjoyed a good working relationship with the representatives of the government of Indonesia, our Indosat partner,' it added.

'We have worked hard building a strong working relationship with our Indonesian partner and adding value to Indosat. Should there be any truth in the report, we will be deeply disappointed.

'More importantly, the reported actions will severely diminish and erode investor confidence in the country.'