Jakarta, January 30, 2007 - Following recent reports in the mass media concerning Arwin Rasyid's resignation from his CEO post at TELKOM, we wish to confirm that:
A resignation letter has never been submitted to the Board of Commissioners of TELKOM.
TELKOM's shareholders are looking to raise the market capitalization of the group to US$30bn by 2010 from then standing at about US$lObn when Arwin Rasyid was named TELKOM's chief in June 2005.
As of December 28'h, 2006 TELKOM's market capitalization has passed the US$22bn mark. Although the business parameters and financial statements of the group have shown significant improvements, TELKOM still has to master many challenges ahead and to seek materializing business opportunities in the years to come. It has been and will remain TELKOM's major focus to improve the company's performance across its product and service portfolio to better serve its customers and its stakeholders.
All these can only be achieved because TELKOM fundamentally has very strong potentials and always strives to conduct business based upon the principles of Good Corporate Governance.
According to Arwin Rasyid: "In the end, it is all up to the shareholders to change the composition of the Board of Directors on the upcoming EGM, if they decided to do so”
