Finance director Sudiro Asno said Friday that Telkom would announce its plan to issue the two series of bonds — class A with 5-year term and class B with 10-year term — by inviting several potential investors in a public expose on Monday.

“The bonds will be effective from June 24, and will be offered from June 28 to 29. We hope to list the bonds at the Indonesia Stock Exchange [BEI] on July 5,” Sudiro said at the launch of a book on the company’s financial reform.

The book tells a story on how the company adapted with the implementation of the Sarbanex Oxley-Act, increasing the standard of the listed company’s financial report in the US.

Telkom president director Rinaldi Firmansyah, who also attended the book’s launch, said the funds obtained would be used to finance Telkom’s investment plans divided into three major categories.

Half of the fund will be used for expansion on new wave businesses, including information technology (IT) and edutainment sectors, while 40 percent of the fund will be used to develop infrastructure, including replacing copper cables with fiber optics. The rest of the fund will be used to optimize legacy and support facilities.

“Our investment plan in the edutainment sector is to make an acquisition of a cable TV company with total investment estimated at about Rp 500 billion,” Rinaldi said.

A previous report said Telkom had to repay as much as Rp 7.8 trillion in debts. Currently, Telkom has stand-by-loan from banks representing a total of Rp 3 trillion that can be used any time.

Although Telkom has made expansion into other sectors, Sudiro said that by far, 40 percent of its revenue was still from cell phone subscribers, the number of which is expected to reach 91 million by the end of the year. A significant increase from 82 million consumers between January and March.

Together with cell phone subscribers, Sudiro mentioned that fixed and mobile broadband consumers as well as decreasing expenses on fixed-line expenses.

“In the second quarter, we predict that our net profit growth will be about 7 percent, or slightly lower from the first quarter’s growth, which was 13 percent from the same period last year,” Rinaldi said.

He added that Telkom was able to achieve a double-digit net profit growth in the first quarter because the company had benefited from the foreign exchange rates.

“The company’s total assets increased to Rp 96.5 trillion in the first quarter, or 5.5 percent higher than last year’s first quarter,” he said.

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