Aria West to invest $180m in West Java<\/p>\n
JAKARTA (JP): Telecommunications firm PT Aria West
\nInternational said on Friday that it planned to invest US$180
\nmillion in its concession area in West Java once it reached
\nagreement with state-owned telecommunications company PT Telkom.<\/p>\n
Aria West chief financial officer Stephen R. Dowling said 40
\npercent of the planned investment fund would come from the
\ncompany's shareholders, with the rest sourced from bank loans.<\/p>\n
Dowling said the company needed to negotiate with PT Telkom on
\nthe arrangement of the joint-operating scheme (KSO) as the
\ncurrent agreement expired by year-end.<\/p>\n
Dowling said his company was ready to return to its master
\ncontract with Telkom but it needed to clarify certain clauses in
\nthe new agreement.<\/p>\n
\"What we need now is time to settle the different
\ninterpretations on unclear clauses. Aria West will negotiate
\nagain with PT Telkom, starting Jan. 17,\" Dowling said.<\/p>\n
Telkom and its five partners, including Aria West, signed a
\nmaster agreement in 1996 to allow the partners to install
\ntelephone lines in five regions in Indonesia. The agreement ends
\nin 2010.<\/p>\n
After the economic crisis hit the country in 1997, the two
\ncamps signed a two-year memorandum of understanding in which
\nTelkom agreed to cut its share of revenue from the projects to 10
\npercent from 30 percent.<\/p>\n
Memorandum<\/p>\n
The memorandum of understanding will end this year. Telkom
\nearlier said it wanted its share of revenue to return to 30
\npercent after the memorandum of understanding lapsed.<\/p>\n
Telkom announced earlier that it had reached agreement with
\nfour of its five partners to ratify their KSO schemes. It further
\nsaid that it had yet to reach agreement with Aria West.<\/p>\n
The four partners which have reached agreement with Telkom are
\nPT Bukaka Singtel International with concession areas in Sulawesi
\nand other areas of eastern Indonesia; PT Mitra Global
\nTelekomunikasi Indonesia with concession areas in Central Java;
\nPT Cable and Wireless Mitratel in Kalimantan and PT Pramindo Ikat
\nNusantara in Sumatra.<\/p>\n
Telkom vice president of communications D. Amarudien said
\nnegotiations with Aria West were put on hold and would resume on
\nJan. 17 because the latter's president John Vondras took a year-
\nend vacation.<\/p>\n
Dowling countered that the delay was because his company
\nstarted negotiations with Telkom only on Dec. 15, while the other
\nKSO partners started negotiations as far back as Nov. 2.<\/p>\n
\"Nevertheless, I'm optimistic that by mid February we will be
\nable to reach agreement on the needed amendments (of the master
\ncontract),\" Dowling said. (43)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/aria-west-to-invest-180m-in-west-java-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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