JAKARTA (TheInsiderStories) — A telecommunication company PT Indosat Ooredoo Tbk (IDX: ISAT) said does not break any rules on the new CEO’ appointment after TheInsiderStories reported the shareholders decision on May 6 possible break the regulation. During two years period, there has been three Indosat’ CEO replacement and raised questions for investors.
The appointment of Ahmad Abdulaziz Al Neama as new company’ CEO came without shareholders meeting. But Indosat Group Head Corporate Communications Turina Farouk told The Insider Stories on Thursday (05/09), that Indosat doesn’t break any rules in the appointment.
“In Level of Authority of Indosat, the company regulate appointment of chief level, including CEO, can be carried out by Board of Commissioner and it doesn’t requires shareholders approval. The appointment of Board of Director, including President Director, requires general meting of shareholders approval,” Farouk said.
According to her, there is different position between president director and CEO position. That’s the reasoned, she acknowledge the decision not broke any rule.
Moreover, she explained that company already appointed Arief Musta’in, a board of directors member, being acting president director during transition period until the next general meeting of shareholders in August.
Previously, in a company announcement to Indonesia Stock Exchange (IDX) on May 7, Indosat stated that Chris Kanter will still be President Director until the next extraordinary shareholders meeting on August 1 or other date, by considering applied regulation and company’ articles of association.
This statement came days after peoples question over the regulation. According to incorporated company law, management must submit Director’ appointment through shareholders meeting.
Moreover in this case, Indosat as a public-listed company, must report the meeting to Financial Services Authority and IDX, 30 days before. During the process, company cannot appoint a replacement, other than acting-director.
In the shareholders meeting, May 2, Chris Kanter still held the number one position in Indosat. Meanwhile, Al Naema was Commissioner of the company.
But a day after, Kanter submitted his resign. Ooredoo then appointed Al Neama as Indosat’ CEO. There’s no explanation why Kanter stepped down from the position. In a letter stated by Ooredoo President Commissioner, Waleed Mohamad Al-Sayed on May 3, it only said that Kanter will be replaced by Al Neama.
Al Neama has 15 years career in Ooredoo. He held several position such as Director of Ooredoo Myanmar, Director of Ooredoo Oman in 2014, Chief Technology and Information Officer of Ooredoo Group in 2017, and Director of Ooredoo Tunisia in 2018. He was graduated from University of Colorado Denver, major in electronical and electronics engineering.
This new CEO responsible is not easy, especially Indosat’ financial condition is not healthy. In 2018, Indosat’s revenues fell by 27 percent to Rp23.14 trillion (US$1.62 billion) and EBITDA which only worth Rp7.6 trillion, down 44 percent from Rp13.6 trillion in 2017. Indosat’ customer numbers also dropped 47.3 percent to 58 million.
The cellular operator has been replacing its president director for several times in the last two year. Kanter, who was appointed in October 2018, only led for six months. He was replacing Joy Wahjudi, who was not so much in a different situation. Wahjudi only became Indosat CEO for less than a year, substituting Alexander Rusli who resigned in September 2017.
The impact over this new leader appointment is not good for the market. Indosat’ shares slumped by 18.97 percent to Rp1,985 in six days since May 3’s market close.
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