Telkom Stock Falls 23.

6%
JAKARTA, June 20 (Reuters) - Shareholders of Indonesia's PT Telekomunikasi
Indonesia Tbk (on Friday approved a plan to buy back up to 3 trillion rupiah ($323
million) worth of shares within the next 18 months.

The country's largest telecoms firm said last month it planned to buy back shares
equivalent to 1.9 percent of its share capital to return excess cash to shareholders and help
support the company's share price.

Telkom's share price has fallen 23.6 percent since the start of the year, underperforming a
13.6 percent drop in the benchmark index .JKSE, as investors worried about rising
competition in the mobile phone industry.

Telkom, which is valued at $16.4 billion, said on Friday that it has spent a total of 3.8
trillion rupiah on buying back shares as of June 19, bringing the number of the firm's
treasury stock to 426 million shares.

"The share buyback is part of the company's strategy to increase the company value and
shareholder value," Telkom's president director, Rinaldi Firmansyah, said in a statement.

Shareholders have also approved a special dividend payment of 1.93 trillion rupiah on top
of the regular 7.07 trillion rupiah dividend, bringing the total dividend payment for the
2007 financial year to 9 trillion rupiah.

Telkom is aiming for an 11-12 percent increase in revenue this year, up from 59.44
trillion rupiah in 2007, despite tougher competition and economic conditions, thanks to
strong growth in its mobile phone business.

The number of subscribers in the world's fourth-most populous nation is expected to

jump to 120 million this year, from around 90 million last year.

Analysts polled by Reuters Estimates expect Telkom to report net profit of 13.92 trillion
rupiah in 2008 on revenue of 67.9 trillion rupiah, which would mark a revenue increase
of 14 percent. ($1 = 9,282 rupiah) (Reporting by Muhamad Al Azhari, Writing by
Andreas Ismar, editing by Sara Webb)
 Telkom's share price has fallen 23.6 percent since the start of the year as
investors worried about rising competition in the mobile phone industry. Shareholders of
Telkom approved a plan to buy back up to 3 trillion rupiah worth of shares within the
next 18 months .The share buyback is part of the company's strategy to increase the
company value and shareholder value. Telkom is aiming for an 11-12 percent increase in
revenue this year.

Yohannes Chrisostomus
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