Mitra Global to help install more telephone lines<\/p>\n
JAKARTA (JP): PT Mitra Global Telekomunikasi Indonesia, a
\nprivate firm commissioned to install telephone lines in Central
\nJava, is willing to help the state meet increased national
\ntargets for telecommunications development.<\/p>\n
Mitra Global's president, S.W.S. Hardjito, outlined the
\ncompany's plans after signing a US$480 million loan agreement
\nwith foreign banks yesterday.<\/p>\n
\"Mitra Global intends to install 100,000 additional telephone
\nlines beyond the 400,000 lines required by the government,\"
\nHardjito said.<\/p>\n
State-owned PT Telkom commissioned Mitra Global last year to
\nconnect the 400,000 telephone lines in Central Java by March
\n1999.<\/p>\n
The private company will manage them together with an existing
\n325,000 lines, previously installed by Telkom, until 2010.<\/p>\n
Mitra Global is one of five private consortia which won 15-
\nyear joint-operation contracts to install approximately 2.2
\nmillion telephone lines in Central Java, West Java, Sumatra,
\nKalimantan and the eastern islands.<\/p>\n
The government has since raised its target for establishing
\nnew telephone lines during its Sixth Five-Year Development Plan
\nby 54 percent from five million to 7.7 million lines.<\/p>\n
The new target includes 6.7 million fixed telephone lines and
\ncapacity for one million mobile telephones.<\/p>\n
Hardjito said that out of the original target of five million
\nlines, Telkom planned to install three million in Jakarta and
\nEast Java.<\/p>\n
\"But Telkom has indicated that it will be unable to install
\nmore than its target, so the additional lines will probably be
\ndivided among its five private contractors.\"<\/p>\n
Hardjito said yesterday that his company would be able to
\ninstall a total of 500,000 lines by the end of 1999, but not by
\nthe March 1999 deadline set by the government.<\/p>\n
Mitra Global yesterday signed a $480 loan facility extended by
\n16 international banks, led by three main arrangers -- the
\nAustralia and New Zealand Banking Group Limited (ANZ), Dai-Ichi
\nKangyo Bank Limited and Deutsche Bank Asia Pacific (Singapore
\nBanking Corporation).<\/p>\n
Hardjito said the loan, which matures in 2004, has an interest
\nrate of 1.35 points above the London Inter-Bank Offered Rates
\n(LIBOR).<\/p>\n
\"We need an investment of $640 million to install 400,000
\nlines by March 1999. We need to increase the investment to $750
\nmillion if we want to install 500,000 lines,\" he said.<\/p>\n
Mitra Global is a consortium jointly owned by the state-owned
\nPT Indosat, PT Widya Duta Infotel, Telstra of Australia, NTT,
\nItochu and Sumitomo of Japan, and various domestic companies.
\n(icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mitra-global-to-help-install-more-telephone-lines-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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