JAKARTA (TheInsiderStories) — A telecommunication provider, PT Indosat Ooredoo Tbk (IDX: ISAT) new CEO’ appointment has triggered question. The appointment of Ahmad Abdulaziz Al Neama as the company’s new leader came without shareholders general meeting. Moreover, there has been three replacement in the last one year period.
Indosat has let the issue ongoing for days, especially because the appointment may violate the regulation. Company then gave confirmation that Chris Kanter will still be the CEO for the next following months.
“Chris Kanter will still be President Director until the next extraordinary shareholders meeting on August 1, 2019, or other date, by considering applied the regulation,” said Indosat Group Head Legal and Corporate Secretary, Gilang Hermawan, on Tuesday (05/07).
This statement came days after people’ question over the regulation. According to incorporated company law, management must submit director’ appointment through shareholders meeting.
Moreover in this case, as public-listed company, Indosat must report the meeting to Financial Services Authority and Indonesia Stock Exchange, 30 days before thw meeting.
During the process, company cannot appoint a replacement, other than acting-director. So far, officials haven’t responded to TheInsiderStories, regarding to this issue.
In the shareholders meeting, May 2, Kanter still held the top position in Indosat. Meanwhile, Al Naema was Commissioner of the company.
But a day after, Kanter submitted his resignation. Indosat 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, 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 US’ University of Colorado Denver, major in electronical and electronics engineering.
This new president director’ responsible is not easy, especially Indosat’s financial condition is not healthy. In 2018, Indosat’s revenues fell by 27 percent to Rp23.14 trillion and EBITDA which only reached Rp7.6 trillion, down 44 percent from Rp13.6 trillion in 2017. Indosat’ customer numbers also dropped 47.3 percent to 58 million.
Indosat has been replacing its president director for several times in the last one year. Kanter, who was appointed in October 2018, only led for 6 months. He was replacing Joy Wahjudi, who was not so much in a different situation.
Wahjudi himself only became Indosat CEO for less than a year, substituting Alexander Rusli who resigned in September 2017.
The impact over this new president director’s appointment is not good for the market. Indosat’s shares slumped by 8.5 percent at 2:49 p.m. local time, since May 3’s market close.
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