Indosat expands with seven new projects<\/p>\n
JAKARTA (JP): PT Indonesia Satellite Corporation (Indosat),
\nthe state-owned international telecommunications operator listed
\non domestic and foreign stock exchanges, will start seven
\nprojects worth US$150 million in telecommunications-related
\nbusinesses.<\/p>\n
Indosat's president, Tjahjono Soerjodibroto, said after the
\ncompany's shareholder meeting yesterday that the seven projects
\nwould include a join telecommunications venture in Cambodia, a
\nconsortium participating in a telecommunications tender in
\nIndonesia, intermediate circular orbit global communications
\n(ICO-GC) and the ASEAN Telecom Holding (ATH).<\/p>\n
\"The other three projects are joint ventures for the marketing
\nof the ICO-GC, the development of a regional mobile satellite
\nsystem and equity participation in PT Sisindosat,\" he said.<\/p>\n
\"The projects will be carried out this year and next year,\" he
\nsaid.<\/p>\n
In Cambodia, he said, Indosat owns a 49 percent stake valued
\nat $6.5 million in Camintel, the firm that will refurbish the
\ntelecommunications infrastructure in the Indo-Chinese country. In
\nthe ICO-GC project, which is controlled by the International
\nMaritime Satellite Organizations (Inmarsat), Indosat owns a 1.4
\npercent stake worth $20 million.<\/p>\n
In the consortium participating in an Indonesian
\ntelecommunications tender, Indosat will allocate Rp 230.7 billion
\n($103.82 million), while in the ATH project, which will start in
\nJune, Indosat owns a 16.7 percent stake worth $1 million, he
\nadded.<\/p>\n
\"In the ICO-GC marketing project, Indosat plans to participate
\nby paying $10 million for a 60 percent share ownership in a firm
\nin Indonesia and at least 7.5 percent ownership in another firm
\nin the United States,\" Tjahjono said.<\/p>\n
He said that Indosat will also provide equity investment of
\n$10 million for 20 percent ownership in the mobile satellite
\ntelecommunications operator called ACeS and another Rp 5.12
\nbillion ($2.3 million) for 60 percent ownership of PT Sisindosat.<\/p>\n
According to Tjahjono, the shareholders have approved the
\nseven projects.<\/p>\n
Commissioners<\/p>\n
He said that the shareholders also approved Indosat's
\nfinancial report, the appointment of three new commissioners and
\nthe distribution of dividend shares.<\/p>\n
\"Jonathan L. Parapak, the Secretary General of the Ministry of
\nTourism, Post and Telecommunications, will become Indosat's chief
\ncommissioner, while the other two new commissioners are Harry
\nSupangkat and Yohannes Soeyadi,\" he said.<\/p>\n
The outgoing chief commissioner was Muchtarudin Siregar, the
\nSecretary General of the Ministry of Transportation who is also
\nchief commissioner of the flag carrier Garuda Indonesia.<\/p>\n
Tjahjono said that Indosat reported Rp 288.9 billion in profit
\nin 1994.<\/p>\n
\"Out of the profit, 70 percent will be used for reinvestment,
\nwhile the other 30 percent will be distributed to shareholders in
\nthe form of dividends valued at Rp 83.72 per share,\" he said,
\nadding that payment will be made in May.<\/p>\n
Indosat floated its shares on the New York Stock Exchange
\n(NYSE), the Jakarta Stock Exchange (JSX) and Surabaya Stock
\nExchange (SSE) in October last year. The company raised US$799
\nmillion from the sales of 25 percent of its ordinary shares
\nthrough the NYSE and around Rp 650 billion ($292.5 million) from
\nthe sales of another 10 percent of its shares on JSX and SSE.<\/p>\n
A total of $426.05 million of the total funds from the sales
\nof Indosat shares were used for early repayment of the
\ngovernment's high-interest loans from the World Bank and the
\nremaining $365 million from the Manila-based Asian Development
\nBank.<\/p>\n
Indosat shares closed at Rp 6,200 on JSX yesterday and at
\n$37.62 on the NYSE on Monday.<\/p>\n
Tjahjono said that he will leave for Singapore, Hong Kong, New
\nYork and Boston in May to make presentations on the results of
\nthe shareholder meeting.(icn)<\/p>",
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