Indosat's net income drops by 11 percent<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State-owned telecommunications company PT Indosat Tbk said its
\n2001 consolidated unaudited net income dropped by 10.8 percent to
\nRp 1.46 trillion (US$143.7 million) from Rp 1.64 trillion in
\n2000, citing higher growth in operating expenses.<\/p>\n
The growth in operating expenses last year was "driven mostly
\nby depreciation, maintenance and miscellaneous expenses,
\ncontributed by the amortization of goodwill and expenses related
\nto the elimination of cross-ownership," the company said in a
\nstatement made available to The Jakarta Post.<\/p>\n
The company said its operating revenue grew 71.7 percent last
\nyear, but its operating expenses jumped 113.2 percent.<\/p>\n
The growth in operating revenue was mostly driven by its
\ncellular business, which contributed 36.4 percent; its
\nmultimedia, datacom and Internet (MIDI) service, which
\ncontributed 19.9 percent; and its international direct dial (IDD)
\noperations, which contributed 41.8 percent.<\/p>\n
Indosat, which is one of the two companies licensed to operate
\nan international phone service, has recently failed to acquire
\nthe fixed-line assets in Central Java and Yogyakarta owned by
\nanother state telecommunications company PT Telekomunikasi
\nIndonesia.<\/p>\n
The company said that this year, it would focus on the
\ncellular business and develop wireless technology as an
\nalternative method to enter the fixed-line business following its
\nfailure to acquire Telkom's Central Java and Yogyakarta fixed-
\nline assets.<\/p>\n
It expected to enter the "fixed wireless business" this year
\nby utilizing its cellular network called IM3 or the network owned
\nby Satelindo. Indosat owns a 75 percent stake in Satelindo.<\/p>\n
Indosat has allocated around Rp 130.5 billion to develop the
\nfixed wireless business.<\/p>\n
In addition, Indosat would also spend Rp 322.1 billion this
\nyear to further develop its backbone, data communications and
\nmultimedia, IDD and Voice over Internet Protocol (VoIP)
\nbusinesses.<\/p>\n
The company planned a capital expenditure of Rp 780 billion
\nthis year but this figure could increase, once it receives
\npayment from Telkom following the aborted sale of the Yogyakarta
\nand Central Java assets.<\/p>\n
Indosat earlier told the Jakarta Stock Exchange that it was
\nentitled to receive $198 million from Telkom in payment for its
\nassets sold to the latter.<\/p>\n
Telkom has acquired a 35 percent stake owned by Indosat in
\ncellular operator Telkomsel. It initially planned, but has so far
\nfailed, to transfer its assets in Yogyakarta and Central Java to
\ncover part of the payment.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosats-net-income-drops-by-11-percent-1447893297",
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"sponsor": "Okusi Associates",
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