The Bisnis Indonesia quoted a spokesman for the State Enterprises Ministry, Sofyan Djalil, as saying Indosat president director Tjahjono Soerjodibroto has also been warned over the issue.

Simandjuntak's dismissal will be effective September 15, Djalil said, and his duties taken over by the company's director of marketing and the business development director, Bisnis said.

Djalil said the dismissal followed an audit by the government's Development and Finance Supervision Board and a private auditor.

He said Simandjuntak was found to have not followed correct procedures to the point where his actions could be seen as a violation.

Separately, Bisnis Indonesia quoted Indosat commissioner Sasmito Dirdjo as saying the decision related to the company's handling of a 112.7 billion rupiah (13.4 million) dividend owed to the government.

The money was not transferred immediately to the government's accounts, he said.

Copyright 1999 AFP. All rights reserved. The material on this page is provided by AFP and may not be published, broadcast, rewritten or redistributed.

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