Business Context and Reporting Period
This Form 6-K filing by Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (PT Telkom) reports the results of the Annual General Meeting of Shareholders (AGM) held on June 30, 2006. The filing, dated July 5, 2006, covers the ratification of financial statements and the appropriation of net income for the fiscal year ended December 31, 2005.
Key Financial Metrics
- Net Income (FY 2005): Rp 7,993,565,069,965 (approx. 7.99 trillion Rupiah).
- Total Cash Dividend: Rp 4,400,090,215,223 (approx. 4.40 trillion Rupiah).
- Dividend Per Share: Rp 218.860 per share.
- Outstanding Shares: 20,104,555,780 shares (as of June 30, 2006).
- Shareholder Return Ratio: Approximately 55% of net income distributed as cash dividends.
- Corporate Social Responsibility Allocations:
- Program Kemitraan (2006): Rp 79,935,650,700.
- Program Bina Lingkungan (2006): Rp 39,967,825,350.
- Employee Bonus (FY 2005): Rp 124,000,000,000.
- Board Performance Bonus (FY 2005): Rp 18,000,000,000.
Material Changes and Governance Actions
The AGM ratified the Annual Accounts for 2005, which were audited by Siddharta, Siddharta & Widjaja (KPMG International) with an opinion that they "fairly in all material respect" reflect the company's financial position. The Annual Report on Program Kemitraan and Program Bina Lingkungan received an audit opinion of "fairly with exception."
Shareholders granted a discharge from responsibilities to all members of the Board of Directors and Board of Commissioners for their actions during the 2005 fiscal year. The meeting also resolved that there would be no changes to the number of Board of Directors members and that incumbent Board of Commissioners would remain in their positions.
Guidance, Outlook, and Compensation
Management Compensation (FY 2006):
- President Director Salary: Rp 108,000,000 per month (net), effective January 1, 2006.
- Other Board Members: Salaries and bonuses are set as percentages of the President Director's compensation (Vice President Director: 95%; Directors: 90%; President Commissioner: 40%; Commissioners: 36%).
- Remuneration and perquisites for 2006 remain the same as in 2005.
Audit Appointment: The Board of Commissioners was authorized to appoint a public accounting firm for the 2006 integrated audit, requiring compliance with the Sarbanes-Oxley Act. The firm Zainal Arifin was re-appointed to audit the Program Kemitraan and Program Bina Lingkungan for 2006.
Dividend Payment Schedule:
- Record Date: July 26, 2006.
- Payment Date: August 9, 2006.
- Tax Note: Non-Indonesian shareholders must submit domicile letters by July 26, 2006, to qualify for reduced tax rates under Double Taxation Agreements; otherwise, a 20% tax applies.
Investor Verification Checklist
- Verify the exact dividend payout date (August 9, 2006) and ensure shares are held by the record date (July 26, 2006).
- Confirm tax residency status for non-Indonesian shareholders to avoid the default 20% withholding tax.
- Review the "fairly with exception" audit opinion regarding the Program Kemitraan and Program Bina Lingkungan for potential operational risks.
- Monitor the appointment of the new external auditor for the 2006 fiscal year to ensure Sarbanes-Oxley compliance.
- Check the allocation of remaining undistributed net profit intended for business expansion.