Telkom still offers network projects to private firms<\/p>\n
JAKARTA (JP): Private firms still have the opportunity to
\nestablish and operate telecommunications networks under a
\njoint operation arrangement with PT Telkom, an official said.<\/p>\n
\"Even though the state-owned domestic telecommunications
\nprovider PT Telkom has signed contracts with five private firms
\nto install and operate some two million lines for a 15-year
\nperiod, other businesses are still available,\" Director General
\nof Post and Telecommunications Djakaria Purawidjaja told
\nreporters yesterday.<\/p>\n
He said after delivering a presentation at a three-day seminar
\non infrastructure that based on government regulation No. 8\/1993,
\nprivate firms are able to participate in the telecommunications
\nbusiness under three different arrangements -- the joint
\noperation arrangement, join venture scheme and management
\ncontract.<\/p>\n
Djakaria said under the joint operation arrangement, potential
\nsmall-scale telecommunications projects include the installation
\nof fixed-telephone lines at housing or commercial estates.<\/p>\n
\"Telkom, for example, can offer such contracts to private
\nfirms for the installation of telephone networks at the Sudirman
\nCentral Business District in South Jakarta and the Kemayoran
\nbusiness area in Central Jakarta,\" he said, adding that companies
\ncan file proposals for such business.<\/p>\n
Telkom signed last month joint operation contracts with five
\nforeign joint ventures, which will install some two million
\ntelephone lines and operate them along with existing lines. The
\nprojects, effective as of January 1996, are expected to bring a
\ntotal revenue of Rp 15.25 trillion (approximately US$6.7 billion)
\nfor Telkom within the next 15 years.<\/p>\n
Among the joint ventures are PT Pramindo Ikat Nusantara (which
\nwill install 516,487 lines in Sumatra), PT Aria West
\nInternational (500,000 lines in West Java), PT Mitra Global
\nTelekomunikasi Indonesia (400,000 lines in Central Java), PT Daya
\nMitra Malindo (237,000 lines in Kalimantan) and PT Bukaka Sing
\nTel (403,000 lines in the country's eastern provinces comprising
\nof Sulawesi, Maluku, Irian Jaya and Nusa Tenggara).<\/p>\n
The five projects are part of the government's program to
\ninstall five million telephone lines within the current Sixth
\nFive-Year Development Plan period which will end in March, 1999.
\nThree million of the total will be installed in the greater
\nJakarta area and East Java by Telkom.<\/p>\n
Local contractors<\/p>\n
In a related development, an executive said yesterday that
\ndomestic telecommunications contractors are ready to participate
\nin the establishment of the two million telephone lines already
\nawarded to the joint ventures.<\/p>\n
\"In West Java, eight local companies have established a
\nconsortium and proposed cooperation with Aria West
\nInternational,\" chief of the investment department of the
\nIndonesian Chamber of Commerce and Industry's West Java chapter,
\nNina Mariana, said.<\/p>\n
She said that the consortium had also held a presentation for
\nAria West.<\/p>\n
Aria West has not made any response but said that meetings
\nshould be arranged to discuss the proposal, she said.<\/p>\n
Many domestic contractors are worried that the five joint
\nventures will look for giant sub-contractors for their projects
\nand will apparently prefer to assign foreign companies, she said.
\n(icn)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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