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Technology Stocks : INDONESIA'S PT TELECOM(TLK) -- Ignore unavailable to you. Want to Upgrade?

To: Jay Fisk who wrote (236)	2/4/1998 5:35:00 AM
From: Rational	Respond to of 947

Telekom closed at Rp 4425 per share and Rp at 9250 per USD in Jakarta. This results in a fair exchanged price for TLK ADR of 4425 * 20 / 9250 = $9.568 The WB's noting of mistakes now was noted by the market that bid down stock prices and Rp a long ago. TLK has dropped from $36 to $8.75 (as of yesterday). Sankar

To: Jay Fisk who wrote (236)	2/4/1998 1:35:00 PM
From: tom	Respond to of 947

IIT is in an interesting position at the moment because with the Rupiah at current levels it actually loses money on outgoing calls as the domestic rates are lower than the international accounting rates. It does, however, make good margins on incoming calls (as it receives US$s and pays TLK Rp interconnection). This situation will remain as long as the accounting rate does not fall as quickly as the Rupiah . This this does seems likely as due to the huge decline in the US$ value of the economy, Indonesia is now seen as a low income country by the FCC and therefore the pressure from to reduce accounting rates is to a large extent removed. It does have one competitor (Satelindo - Suharto family owned) but no price competition is allowed and so far Indosat still retains 90% market share. I don't think that any more deregulation is likely to occur.