PT Telkom, AriaWest end partnership<\/p>\n
BANDUNG (JP): State-owned telecommunications company PT Telkom
\nand its foreign partner, PT AriaWest International, have agreed
\nto end their long-running conflict over the management of the
\ntelephone business in West Java with the termination of their
\nJoint Cooperation Scheme (KSO) contract.<\/p>\n
Telkom director of operations and marketing Komaruddin
\nSastrakoesoemah said the decision was made in an informal meeting
\nwith AriaWest on Tuesday night, and had the government's
\napproval.<\/p>\n
\"(Just like) husbands and wives when they don't get along,
\nthey would be better off to separate peacefully,\" he said to The
\nJakarta Post by phone.<\/p>\n
Komaruddin said that Telkom has plans to combine the West Java
\noperations, previously handled by AriaWest, to its Jakarta
\noperations, while AriaWest plans to shift its business to non-
\nPublic Switching Telephone Network (PSTN).<\/p>\n
AriaWest executives were not available for comment.<\/p>\n
Komaruddin said Telkom is ready to pay compensation to
\nAriaWest for the early termination of the partnership, and that
\nfinancial advisors from Telkom, AriaWest, and the government are
\ncurrently assessing the value of the existing assets.<\/p>\n
\"We are aware that it means the KSO, which should have expired
\nafter another 10 years, would be terminated earlier. (AriaWest's)
\ninvestments have not been fully recouped,\" Komaruddin said in
\nBandung.<\/p>\n
The evaluation of the asset is expected to be completed by the
\nmiddle of October, after which a Memorandum of Understanding
\n(MoU) would be drawn up, he said.<\/p>\n
The MoU would contain the amount of compensation to be paid by
\nTelkom, options for payment, and Telkom's finalization process.<\/p>\n
\"Hopefully the MoU will be signed by the end of the year,\"
\nKomaruddin said, adding that it was subject to the approval of
\nTelkom shareholders.<\/p>\n
In the meantime, Telkom would continue to install telephone
\nlines for the West Java area, he said, adding that Telkom and
\nAriaWest had invested Rp 4 billion to fulfill mounting demand for
\nnew lines.<\/p>\n
The dispute between Telkom and AriaWest over the management
\nand operation of the telephone business, has been going on since
\nNovember last year.<\/p>\n
AriaWest, and four other foreign joint venturers were
\nappointed and authorized by Telkom in 1996 to finance, build and
\noperate domestic fixed line telephone services separately across
\nthe country on behalf of Telkom under a revenue-sharing scheme
\nuntil 2010.<\/p>\n
The other four companies are PT Pramindo Ikat Nusantara, PT
\nMitra Global Telekomindo Indonesia, PT Cable & Wireless Mitratel
\nand PT Bukaka Singtel.<\/p>\n
World telecom giants like France Cable et Radio, American
\nAT&T, Britain's Cable & Wireless Plc., Australian Telstra,
\nJapan's Marubeni Corp., Sumitomo Corp., and Itochu Corp,
\nSingapore Telecom and Hong Kong's TM Communications are involved
\nas shareholders in the five companies. (10\/25)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-telkom-ariawest-end-partnership-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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