Telkom lacks good faith: Pramindo<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
PT Pramindo Ikat Nusantara, a joint operation scheme (KSO)
\npartner of state-owned telecommunications firm PT Telkom, has
\naccused the latter of not acting in good faith in completing a
\nplanned asset buyout transaction.<\/p>\n
Pramindo managing director Jean Marie Gauthier said on Tuesday
\nthat the asset sale transaction could not yet be finalized due to
\na disagreement over price.<\/p>\n
\"The question is, is there any good will on the part of Telkom
\nto conclude these negotiations because we started the discussions
\nnine months ago and Telkom promised to finish them by the end of
\nlast year\", Gauthier told The Jakarta Post and Koran Tempo.<\/p>\n
Pramindo is one of the five KSO partners of Telkom that were
\ngranted contracts in 1995 to construct and operate fixed
\ntelephone lines in various provinces in Indonesia. Pramindo holds
\na 15-year contract to develop and manage telephone lines in
\nSumatra.<\/p>\n
Under the contract, the KSO partner is required to install new
\ntelephone lines, pay Telkom an up-front license fee and a monthly
\nminimum fee, and give Telkom a specified share of the KSO's
\nprofits.<\/p>\n
The contracts were then amended in mid-1998 on account of
\nseveral factors, especially the impact of the 1997 economic
\ncrisis, which meant that no significant profits accrued to the
\nbusinesses. Telkom, the government and its KSO partners then
\nsigned a Memorandum of Understanding (MOU) in June 1998.<\/p>\n
This MOU offered five alternatives to the KSO partners, one of
\nwhich was for Telkom to buy out KSO assets. Pramindo then agreed
\nto sell back its assets to Telkom.<\/p>\n
Gauthier declined to disclose the price Pramindo was seeking
\nfor its assets.<\/p>\n
\"Our financial experts and banks have made an assessment of
\nthe value. They came up with different figures. I can't state the
\namount outside of negotiations,\" he said.<\/p>\n
Separately, Telkom finance director Mursyid Amal dismissed
\nGauthier's allegation, saying it was normal for Telkom to
\nnegotiate for the best purchase price.<\/p>\n
He also declined to disclose the price that would be agreeable
\nto Telkom.<\/p>\n
But Mursyid expected that his side could complete the
\nnegotiating process before a shareholders' meeting in March or
\nApril.<\/p>\n
Pramindo currently runs one million fixed telephone lines
\nacross Sumatra island. Pramindo is 40 percent owned by Astratel
\nNusantara, a unit of Astra International, 35 percent by France
\nCables et Radio, 13 percent by PT Indonesian Satellite
\nCorporation (ISAT), eight percent by Marubeni and two percent by
\nNichimen Corporation.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-lacks-good-faith-pramindo-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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