Indosat to acquire video recording firm<\/p>\n
JAKARTA (JP): The country's international telecommunications
\noperator, PT Indosat, will buy a stake of up to 40 percent in PT
\nYasawirya Tama Cipta, a Jakarta-based private video recording
\nfirm.<\/p>\n
The company's general manager of investor relations, Budi
\nPrasetyo, said yesterday that a basic agreement of the share
\nacquisition was signed on March 12.<\/p>\n
\"We expect to seal the final deal by June this year, after
\nYasawirya Tama holds its shareholders meeting,\" he said.<\/p>\n
He refused to disclose how much the 40 percent share
\nacquisition would cost.<\/p>\n
\"The cost will be much less than Rp 100 billion (US$42.8
\nmillion), a level of any dealings allowed by the government to be
\ndecided by Indosat's board of commissioners,\" he said.<\/p>\n
As a production house which provides video recordings for
\ntelevision broadcasting, Yasawirya Tama also provides video
\ntechnical assistance. After the share acquisition, the company
\nwill be 40 percent owned by Indosat and 60 percent by businessman
\nYouk Tanzil.<\/p>\n
Indosat, which is listed on the New York and Jakarta stock
\nexchanges, announced yesterday that its intention in
\nparticipating in the Yasawirya Tama equity is to explore and
\ndevelop a multimedia business.<\/p>\n
Budi said that the business of multimedia consisted of several
\nparts including contents, distribution, transportation and
\npackaging. \"Multimedia costs will mostly be spent on contents and
\npackaging.\"<\/p>\n
Indosat is currently exploring the possibility of providing
\nmultimedia services in the country and has budgeted $13.5 million
\nfor 1996 for the development of a pilot network. The company is
\nnegotiating doing business with Tsuginami, a Japanese
\nbroadcasting firm.<\/p>\n
Last year, Indosat's profit reached Rp 459.4 billion ($197
\nmillion), 59 percent higher than that in the previous year. The
\ncompany has announced an intention to invest about $736.5 million
\nwithin the 1996 to 2000 period on regional and international
\ntelecommunications projects and participation in domestic
\ntelecommunications infrastructure to support its core business.<\/p>\n
Competition in international telecommunications services
\nstarted in August 1994 when private firm PT Satelindo entered the
\nmarket. The country's market share of international calls, in the
\nmeantime, has recently shown insignificant growth. Last year's
\n15.3 percent growth in international calls gained by Indosat was
\nfar lower than the 20.7 percent recorded in 1994.<\/p>\n
Indosat is now exploring new business fields after taking
\nstakes in Japanese and U.S. firms in 1995. Among the planned
\nprojects was the establishment of a joint venture firm in
\nKazakstan to provide telecommunications services in that country
\nwith a planned investment of $5 million between 1996 and 2000.<\/p>\n
Other planned businesses include strategic alliance with World
\nPartners Association, a consortium of the American AT&T,
\nSingapore Telecom and Japanese KDD as the lead parties, which is
\nexpected to enable Indosat to provide seamless-managed
\ncommunication network services to its clients worldwide.<\/p>\n
Indosat, which owns 1.41 percent shares in Inmarsat-P, a
\nglobal mobile satellite system to be launched in 2000, is
\ncurrently considering additional satellite-based
\ntelecommunication projects including Iridium, Globalstar and
\nOdyssey. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosat-to-acquire-video-recording-firm-1447893297",
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"sponsor": "Okusi Associates",
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