AriaWest warns govt over plan to set up team<\/p>\n
JAKARTA (JP): Joint cooperation (KSO) partner of state-owned
\nPT Telkom, PT AriaWest International, said it rejected the
\ngovernment's plan to assign an independent team to temporarily
\ntake over its telecommunications operations in West Java and
\nBanten.<\/p>\n
AriaWest's Chief Financial Officer Stephen R. Dowling warned
\non Wednesday that the company would file an arbitration
\nproceeding against the government if it went ahead with its plan.<\/p>\n
\"We've told the government on many occasions to be very
\ncareful about what they do here,\" he told reporters.<\/p>\n
Dowling labeled the plan as an \"expropriation\" of its right,
\nwarning that international agencies such as the World Bank and
\ninsurance firms would take legal action against the government of
\nIndonesia.<\/p>\n
The Ministry of Communications announced last week that it
\nwill install an independent team to temporarily handle the
\nday-to-day operations of AriaWest, due to the prolonged conflict
\nbetween the company and Telkom.<\/p>\n
The conflict, which is mainly focused on the valuation price
\nfor AriaWest's assets and operations which Telkom intended to
\nbuy, has reportedly disturbed telecommunication services in both
\nprovinces. Telkom's 5000 employees in the region, who are managed
\nby AriaWest under the KSO contract, failed to receive their June
\nsalary on time.<\/p>\n
AriaWest had sent a letter to Minister of Communications Budhi
\nMulyawan Suyitno, asking the reasons behind the plan to establish
\nthe independent management team, Dowling said, but, he added the
\nminister had yet to give a response.<\/p>\n
Dowling asserted that the problem with the West Java and
\nBanten telecommunications regions did not lie with its
\nmanagement, but were due to Telkom's withholding of operational
\nfunds collected from customers.<\/p>\n
AriaWest only has Rp 300 million (about US$26,548) left in the
\nKSO account at ABN Amro Bank which is not enough to cover one
\nday's operation, he said, adding that at least Rp 265 billion
\nhad been collected from subscribers in the provinces, which were
\nbeing held in Telkom's accounts at several local banks.<\/p>\n
The banks include Bank BNI, Bank Mandiri, Bank BRI, and Bank
\nBukopin, Dowling said.<\/p>\n
\"The problem is ... who's got the cash, who has control of the
\nwallet here. And who's got the wallet here is PT Telkom and
\nthey're refusing to transfer the money,\" Dowling charged.<\/p>\n
Dowling explained that under the existing payment system,
\ncustomers pay their phone bills at Telkom-appointed banks, which
\nput the money in Telkom accounts. Telkom then transfers the money
\nto the KSO account.<\/p>\n
AriaWest had also filed an arbitration suit against Telkom in
\nMay with the International Chamber of Commerce (ICC). It demanded
\n$1.3 billion for losses incurred by Telkom's breaches of the KSO
\ncontract agreement.<\/p>\n
Meanwhile, Telkom's director of operations Komarudin
\nSastrakoesoemah denied that Telkom was withholding any phone fees
\ncollected from customers.<\/p>\n
He said the transfer of money from Telkom to the KSO account
\nwent smoothly up until last October.(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ariawest-warns-govt-over-plan-to-set-up-team-1447893297",
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"sponsor": "Okusi Associates",
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