JP\/13\/Telkom<\/p>\n
House questions Telkom's $1.8b mega project<\/p>\n
Rendi A. Witular
\nThe Jakarta Post
\nJakarta<\/p>\n
The House of Representatives grilled state-owned
\ntelecommunication company PT Telkom on Wednesday over its US$1.8
\nbillion projects amid rumors about collusive practices in the
\ntendering process for the projects.<\/p>\n
During a hearing with House Commission IV, which oversees
\ntelecommunication, infrastructure and transportation, legislator
\nAkhmad Muqowam warned Telkom that the tender process should be
\nconducted fairly and transparently.<\/p>\n
\"Telkom must be professional in carrying out the tender
\nprocess, considering the huge amount of money involved in the
\nproject,\" said Akhmad, who chairs the telecommunication
\nsubcommission.<\/p>\n
In an effort to enhance its telecommunication infrastructure,
\nTelkom launched a groundbreaking project called T-21 in November,
\n2001. The T-21 actually comprises three projects: developing 1.6
\nmillion telephone lines for fixed wireless Code Division Multiple
\nAccess (CDMA; a cellular technology system which offers clearer
\nsound, wider coverage, smoother transmission and multimedia
\nfacilities); upgrading the switching system, regional junction
\nand access networks; and developing a fiber-optic transmission
\nnetwork. The projects are scheduled to commence in 2002 and
\nfinish in 2005.<\/p>\n
After the hearing, Akhmad told The Jakarta Post that he had
\nheard several rumors about irregularities during the tendering
\nprocess for the projects, but refused to elaborate further.<\/p>\n
Under Telkom's schedule, the tender process for all the
\nprojects was to have been completed in August this year. However,
\nthe company delayed the tender plan due to \"technical problems,\"
\nand has thus been able to complete the bidding process for only
\npart of the CDMA project, which was won by South Korean firm
\nSamsung Electronics Co.<\/p>\n
Rumor has it that the delay was caused by people in President
\nMegawati Soekarnoputri's inner circle, who allegedly intervened
\nin the tender process and backed one bidder.<\/p>\n
Telkom spokesman Bambang Edi Praptono has denied that the
\ncompany was under pressure from any particular party in selecting
\nbidders.<\/p>\n
\"There was no intervention; the delay was merely due to
\ntechnical problems,\" said Bambang, adding that the victorious
\nbidders would be announced in November or December of this year.<\/p>\n
Bidders for the project include some of the world's giant
\ntelecommunication companies, such as Ericsson Consortium, Hyundai
\nCorporation, Motorola Inc., Alcatel Consortium, Siemens
\nConsortium, NEC Consortium, LT Consortium (Lucent), Samsung
\nElectronics, ZTE Corporation and Huawei Consortium.<\/p>\n
Considering the huge investment and the complexity of the
\nprojects, Telkom has divided the projects into six \"packages\",
\nwith each of the three projects -- CDMA, Switching, and
\nTransmission -- comprising two packages each.<\/p>\n
CDMA Package 1, which is worth US$251.4 million, covers the
\nareas of Sumatra and Greater Jakarta; while CDMA Package 2, worth
\nUS$317.6 million and won by Samsung, covers Central Java,
\nYogyakarta, East Java, Kalimantan, Bali, Nusa Tenggara, Sulawesi
\nand other islands located in eastern Indonesia.<\/p>\n
Switching Package 1 is worth US$296.5 million and covers
\nSumatra and Greater Jakarta; while Switching Package 2 is worth
\nUS$381.2 million covers East Java, Kalimantan and eastern
\nIndonesia.<\/p>\n
Transmission Package 1, worth US$283.6 million, will link the
\nprovincial capitals of Banjarmasin, South Kalimantan, and
\nSamarinda, East Kalimantan; and Transmission Package 2, worth
\nUS$363 million, will link the provincial capitals of Makassar,
\nSouth Sulawesi, and Palu, Central Sulawesi.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13telkom-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}