Telkom prepares two join ventures<\/p>\n
JAKARTA (JP): The state-owned domestic telecommunications
\noperator PT Telekomunikasi Indonesia (Telkom) is negotiating with
\nprivate firms to set up two joint ventures which will operate in
\ncellular telecommunications services.<\/p>\n
\"We are still negotiating with PT Centralindo Panca Sakti and
\nPT Rajasa Hazanah Perkasa to set up joint ventures,\" Telkom's
\npresident Setyanto P. Santosa said after hosting a gala dinner
\nhere Thursday evening for Telkom's business partners.<\/p>\n
Centralindo and Rajasa currently operate cellular mobile
\ntelecommunications under a revenue sharing plan with Telkom.
\nUnder the plan, private firms are usually required to extend some
\n30 percent of their revenues to Telkom. However, based on a
\ngovernment regulation and a decree by the Ministry of Tourism,
\nPost and Telecommunications, which were issued in 1993, the
\nrevenue sharing plan with Telkom will be abolished.<\/p>\n
Centralindo, currently operating the advanced mobile phone
\nsystem (AMPS-800) in Central and East Java, has some 9,200
\nsubscribers and expects to install 20,000 lines by 2000.
\nCentralindo is jointly owned by the Djatikusomo, the Atmaja and
\nthe Pribadi families.<\/p>\n
Rajasa, which operates Nordic mobile telephones (NMT-450) in
\nJakarta and Bandung in West Java, has about 15,000 subscribers.
\nThe company, established by the Taher family, is now jointly
\nowned by PT Bina Reksa Perdana (owned by Hutomo Mandala Putra),
\nBell Atlantic and International Wireless Communications of the
\nUnited States.<\/p>\n
Price<\/p>\n
According to Setyanto, joint venture arrangements will give
\nTelkom's partners longer investment plans, which should cause the
\nprices of handsets to go down.<\/p>\n
\"In an eight-year revenue sharing scheme, for instance, an
\ninvestor will offer products expensively to gain profits within
\nthe limited period. If the investor establishes a joint venture,
\nit will have a longer period to recover its investment. This way
\nthey can charge cheaper handset prices,\" he said, adding that the
\nrevenue sharing plans with Rajasa and Centralindo will expire
\nwithin the next three to four years.<\/p>\n
Telkom already has a number joint ventures in the cellular
\nmobile telecommunications business, including PT Satelindo, which
\nruns the Global System for Mobile Communications\/GSM (with a
\nstake of 7.5 percent); PT Komselindo, which runs the digital
\nadvanced mobile phone service\/AMPS (35 percent); PT Telekomindo
\nPrima Bakti, which runs AMPS (10 percent); and PT Telkomsel,
\nwhich runs GSM (51 percent).<\/p>\n
Telkom, which plans to float its shares in London, New York
\nand Jakarta later this year, also has ownerships in several basic
\ntelecommunications-related firms, including PT Ratelindo, a radio
\nphone operator (with a stake of 45 percent) and PT Satelit Palapa
\nNusantara, a recycled-satellite operator (25.5 percent). (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-prepares-two-join-ventures-1447893297",
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"sponsor": "Okusi Associates",
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