Elektrindo ready to float shares in 1996: Kuntoro<\/p>\n
JAKARTA (JP): The decreasing price of cellular handphones has
\ncut into the profits of PT Elektrindo Nusantara but has not
\ndeterred the private telecommunications company from floating its
\nshares on the domestic stock exchange.<\/p>\n
\"The board of commissioners has told us to prepare the listing
\nof our company. Our core business in digital central switching,
\nthe STK-1000, is very promising,\" Elektrindo's president, Harry
\nKuntoro, said yesterday after attending a ceremony marking the
\ncompany's 12th anniversary.<\/p>\n
He said that the company will be ready for an initial public
\noffering next year.<\/p>\n
He said that his company, founded in 1983 as a subsidiary of
\nthe Bimantara Group, started its business in engineering the
\ntechnical updates of earth station electronic products of the
\nAmerican Hughes Aircraft Company.<\/p>\n
\"Currently, Elektrindo is concentrating on the STK-1000, a
\nsmall capacity digital telephone exchange of 1,000 lines,\" Harry
\nsaid. Its other business is the VSAT (very small aperture
\nterminal) system.<\/p>\n
He said that his company will develop 16,200 STK-1000 lines
\nfor the state-owned telecommunications company for use in rural
\nareas.<\/p>\n
\"Our company's total assets increased steadily from Rp 133.8
\nbillion (US$60.21 million) in 1991 to Rp 177.2 billion in 1992
\nand to Rp 216 billion in 1993. Last year the assets reached Rp
\n234 billion ($105.31 million),\" he said.<\/p>\n
Elektrindo's finance director, Baringin Simanjuntak, said that
\nhis company's profits decreased from Rp 31.5 billion ($14.17
\nmillion) in 1992 to Rp 22.5 billion ($10.12 million) in 1993 and
\nto Rp 17.2 billion.<\/p>\n
\"This year we expect a profit of Rp 11 billion ($4.95
\nmillion). The drop was caused by the government's decision to cut
\nthe price of cellular telephones from about Rp 15 million in 1992
\nto only some Rp 4.5 million this year,\" Baringin said.<\/p>\n
Elektrindo runs an advanced mobile cellular phone service in
\nJakarta, Bandung in West Java, Medan in North Sumatra and
\nUjungpandang in South Sulawesi. According to Harry, Elektrindo
\ngained 60 percent of its profit from the cellular business, 25
\npercent from telephone networks operated under a revenue sharing
\nprogram with Telkom and 15 percent from other businesses.<\/p>\n
He said that the company now has five affiliated firms
\nincluding PT NEC Nusantara Communications, PT Alcatel Enkomindo,
\nPT Pasifik Satelit Nusantara, PT Komselindo and PT Nusantara
\nSubmarine Cable Service.<\/p>\n
Elektrindo has also established a consortium with Cable &
\nWires of Britain and Kanimatsu of Japan to participate in the
\ntender for the two million telephone lines of PT Telekom.<\/p>\n
Elektrindo is 51 percent owned by PT Bimantara Citra, a
\nholding company of the Bimantara Group controlled by President
\nSoeharto's son, Bambang Trihatmodjo. The other shareholders
\ninclude PT Karya Teka Panca Murni (25 percent), Azbindo Nusantara
\n(14 percent), Adipta Adidhana and Astagina Prakarsatama (five
\npercent each).<\/p>\n
Bimantara Citra announced last month that it had planned to
\nfloat new shares on the Jakarta Stock Exchange in the middle of
\nthis year.<\/p>\n
In addition to Elektrindo, the holding company controls 25
\nother subsidiaries whose business interests include
\ntransportation, property, automotive assembling and broadcasting.
\n(icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/elektrindo-ready-to-float-shares-in-1996-kuntoro-1447893297",
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"sponsor": "Okusi Associates",
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