Telkom forecasts sales to increase 20% in 2006 from network expansion<\/p>\n
Soraya Permatasari and Naila Firdausi, Bloomberg\/Jakarta<\/p>\n
PT Telekomunikasi Indonesia (Telkom), the nation's biggest
\ntelephone company, expects sales to rise 20 percent next year, as
\nthe company plans to expand its network to attract more users.<\/p>\n
Telkom and its units have budgeted a combined Rp 14.5 trillion
\n(US$1.44 billion) to Rp 19 trillion for capital expenditure next
\nyear, higher than the Rp 13 trillion for this year, said
\nPresident Arwin Rasyid.<\/p>\n
Telkom is counting on rising demand for mobile-phone services
\nin the country. Indonesia's cell-phone users may increase to
\nabout 79 million by 2007, according to Morgan Stanley, making the
\ncountry Asia's fourth-largest mobile-phone market.<\/p>\n
"We still expect good growth in cellular-service demand and
\nalso more demand for Flexi," Rasyid told reporters and analysts
\non Thursday. "The capex is for expanding cellular and Flexi
\nnetworks and to expand broadband for our multimedia services."<\/p>\n
Telkom said in October it added 140,000 users to its Flexi
\nwireless service that charges its customers a cheaper, fixed-line
\nrate. Telkom had 3.8 million Flexi users in September and aims to
\nraise its Flexi user base to five million, Bisnis Indonesia
\nreported on Sept. 30. Telkom said on Nov. 14 it is seeking to
\npartner with a Hong Kong-based company to expand its multimedia
\nbusiness.<\/p>\n
The company also expects this year's revenue to increase 20
\npercent, Rasyid said. That's higher than the 18 percent sales
\nincrease estimated in August.<\/p>\n
Telkom said on Oct. 31 net income in the nine months to Sept.
\n30 rose 19 percent to Rp 5.78 trillion as revenue at its mobile-
\nphone unit PT Telekomunikasi Selular (Telkomsel) gained 29
\npercent. In 2004, Telkom earned Rp 6.13 trillion in net income on
\nsales of Rp 33.9 trillion.<\/p>\n
Separately, Telkom Chief Commissioner Tanri Abeng said the
\ncompany has proposed to add two directors to its board. In a June
\nshareholders' meeting the company increased the size of the board
\nto seven from five.<\/p>\n
"The first one will be to handle risk management, and the
\nother will be for logistics and services," he told reporters on
\nThursday in Jakarta. "We feel we need more directors to support
\nour efforts to triple our market value in five years."<\/p>\n
Telkom's shares gained Rp 150, or 2.9 percent, to Rp 5,300 at
\nthe 12 p.m. local time break on the Jakarta Stock Exchange.<\/p>",
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