Wednesday, January 31, 2007

Arwin Rasyid's letter to The President

Dear Mr President,
First of all, please accept my apology for writing this letter which may be not proper enough from political or administration point of few. Especially because so many intricating issues that need your fullest attention. I write to you simply because I have nobody to talk to regarding my job as CEO of the most profitable state-owned company PT Telkom Tbk.

Bapak Presiden, you're the one who convinced me to take the job two years ago with target of USD30 billion market capitalization by 2010. But since I started walking into the company's hallway, I never feel secure. I tried to please the board of commissioners & workers with higher salaries/bonuses. I tried to be nice to everybody, but board of commissioners dropped a bomb last August with the vote of no confidence letter. Since then I know that I would never trust them anymore however hard I may try.
Bapak Presiden asked me to clean up the company from KKN practices. Hope you're aware that one of the largest TV station is owned by one of our largest, uniterrupted, supplier for many years. One of Jakarta's governor candidates collected money for campaign from his wife, one of our contractor. A former minister maintain his lucrative business-political power inside the company and is collecting huge money for a president candidate to challenge you in 2009.
I have to admit, we're long way to go to reach the ideals of what Telkom should be. Performance wise, we're blessed with the monopoly, even though legally the competition has been launched several years ago. Most of our fellow citizens still have no access to telephone line.
Market capitalization jumped almost 80% last year, even though that's not a result of significant improvement in fundamentals.
We have nothing to worry about the numbers. I'm sure USD30 billion cap would be easy to get. But I'm deeply worried about future direction of the company. We're heading to shareholders meeting scheduled next month or so. I really have no problem if you ask me to go if that's for the best of the country.
But if you want me to stay, I need your full support. I can't work with those (BOC & BOD) who have no trust in me. Sorry to say that this is a situation of me or them, can't be both. Unless all of us sign an agreement before you that we'll work as a team.
Bapak President, once again, thank you for giving me the trust. Please send my best regards to Ibu Ani.




Anonymous Anonymous said...

Hei,is this really Arwin's letter?

January 31, 2007 12:37 PM  
Anonymous Anonymous said...

He he he...
In the current situation...
Nobody knows my dear friend...

January 31, 2007 1:40 PM  
Anonymous Anonymous said...

It may be a bit fanciful but it highlights some of the key problems an Telkom today. The shift to e-procurement opened up the problems by removing traditional ways to get rich at shareholders' expense. Interesting to see if govt backs reform or a return to old style of management. In the meantime the share price remains volatile.

February 01, 2007 4:32 PM  

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