Telkom regional office plans strike<\/p>\n
The Jakarta Post
\nSemarang<\/p>\n
Employees of state-owned telecommunications firm PT Telkom's
\nCentral Java and Yogyakarta regional offices will strike on
\nMonday to protest plans to transfer the unit to state-owned
\ntelecommunications company PT Indosat, according to a labor union
\nchief.<\/p>\n
Chief of Telkom Divre IV workers union Syahrul Akhyar said on
\nSunday that the strike would continue until the government
\nformally scrapped the asset transfer plan.<\/p>\n
\"We apologize to all Telkom customers because we will not be
\nable to provide optimal service (during the strike),\" Syahrul
\ntold The Jakarta Post.<\/p>\n
Divre IV covers Telkom's operations in the Yogyakarta and
\nCentral Java provinces.<\/p>\n
Telkom and Indosat reached an agreement in May last year to
\nswap assets in a bid to end their cross-ownership of the
\ncountry's telecommunications industry.<\/p>\n
Under the plan, Telkom will sell the Divre IV unit to Indosat,
\none of two operators licensed by the government to offer
\ninternational call services. The deal will pave the way for
\nIndosat to enter the fixed-line telecommunications business
\nbesides the international phone business where it had been facing
\nstiff competition from international providers.<\/p>\n
Meanwhile, Telkom will acquire Indosat's 35 percent stake in
\nthe country's largest cellular phone provider, PT Telkomsel.<\/p>\n
The government hopes the transaction will strengthen the two
\nstate-owned telecommunications companies in anticipation of
\nstrong competition when the telecommunications sector will be
\nliberalized in 2003.<\/p>\n
However, employees of Telkom Divre IV have protested the plan.
\nLast week, some 3,000 employees staged a peaceful demonstration
\nin Jakarta to urge the government to abandon the plan.<\/p>\n
The massive protests by Telkom workers have raised concerns
\nthat the asset transaction could collapse.<\/p>\n
Some analysts believe that both the top management of Telkom
\nand Indosat were committed to concluding the deal as it would
\nbenefit the two companies, while the management of Telkom Divre
\nIV rejected the plan due to fears of a reshuffle and an audit
\nthat would reveal past corrupt practices.<\/p>\n
Late last year, massive protests by workers of state-owned
\ncement giant PT Semen Gresik managed to delay the government plan
\nto sell a controlling stake in the company to Mexico's Cemex SA
\nde CV.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-regional-office-plans-strike-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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