Indosat hails joint venture plan with MGTI for C. Java<\/p>\n
JAKARTA (JP): State-owned telecommunications company PT
\nIndosat said it welcomed the idea of a joint venture with PT
\nMitra Global Telekomunikasi Indonesia (MGTI) to manage
\ntelecommunications services in Central Java and Yogyakarta.<\/p>\n
Indosat's finance director Habimono Koesoebjono said the
\ncompany supported the joint venture plan because it was easier to
\nmanage than the joint operation (KSO) system which MGTI now had
\nwith state-owned company PT Telkom.<\/p>\n
However, the plan will have to wait until Indosat's
\nacquisition of Telkom's rights and obligations in MGTI are
\nfinalized, he said.<\/p>\n
MGTI is one of the five operators of joint operation systems
\nwith Telkom which were licensed in late 1995. The other four are
\nPT AriaWest International for West Java, PT Paramindo Ikat
\nNusantara for Sumatra, PT Dayamitra Malindo for Kalimantan and PT
\nBukaka Singtel Indonesia for eastern Indonesian areas.<\/p>\n
Indosat's acquisition of Central Java and Yogyakarta's
\ntelecoms operations was part of a US$1.5 billion transaction
\nbetween the two state companies in May to end with their
\ncrossholdings in a number of telecoms businesses.<\/p>\n
The deal involving Telkom's rights in the Central Java and
\nYogyakarta telecommunications regions -- also known as regional
\ndivision (Divre) IV -- was valued at $375 million.<\/p>\n
The other transactions include the sale of Indosat's 35
\npercent stake in cellular phone company PT Telkomsel to Telkom
\nworth $945 million and Indosat's purchase of Telkom's 22.5
\npercent shares in cellular phone operator PT Satelindo for $186
\nmillion.<\/p>\n
The finalization of the transaction is still subject to
\ncertain conditions, including the completion of the Telkomsel and
\nSatelindo transactions, the granting of licenses for local and
\nlong-distance phone services to Indosat by the government, and
\nthe execution of interconnection agreements, Habimono said.<\/p>\n
\"We still have several conditions to meet, but we have time
\nuntil the end of January next year,\" he said, without
\nelaborating.<\/p>\n
MGTI is 32.5 percent owned by PT Widya Duta Infotel, 30
\npercent by Indosat, 20 percent by Australia's Telstra Global
\nLtd., 15 percent by the United Kingdom's NTT Finance Ltd and 1.25
\npercent each by Japan's Sumitomo Corp. and Itochu Corp.<\/p>\n
Earlier MGTI's president Sutrisman said its shareholders had
\nagreed to continue its operations in Central Java and Yogyakarta
\nwith Indosat but under a new joint venture company. (tnt)<\/p>",
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"sponsor": "Okusi Associates",
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