Telkom to finance AriaWest's operation<\/p>\n
JAKARTA (JP): State-owned telecoms company PT Telkom said it
\nwould provide operational funds for the West Java and Banten
\ntelecommunications regions, managed by PT AriaWest International,
\nfor as long as the dispute between the two companies continued.<\/p>\n
Telkom's director of operations and marketing Komarudin
\nSastrakoesoemah said on Friday that Telkom would lend the money
\nto the telecommunications regions so that their day-to-day
\noperations would no longer suffer the impacts of the dispute.<\/p>\n
\"We will invite the management of the regions, AriaWest and
\nalso the government to a meeting (next) Monday to discuss the
\npayment procedures,\" he told The Jakarta Post.<\/p>\n
A protracted dispute between Telkom and AriaWest, which
\ncenters on the buyout price of AriaWest's assets and operations
\nby Telkom, has affected the day-to-day telecoms operations in
\nboth regions.<\/p>\n
Telkom's employees have yet to receive their June salaries
\nfrom AriaWest and state electricity company PT PLN has yet to
\nreceive payment for its power bills due in June.<\/p>\n
Earlier, Komarudin said PLN had threatened to stop power
\nsupplies to the West Java and Banten telecoms facilities unless
\nTelkom and AriaWest paid the Rp 1.3 billion (about US$115,000)
\nbill by next Wednesday.<\/p>\n
Telkom is ready to dole out between Rp 30 billion and Rp 40
\nbillion each month to help the regions meet their basic needs,
\nincluding paying salaries and power bills, he said.<\/p>\n
\"We are prepared to do this until the dispute has been
\nresolved or, if worse comes to worst, until a verdict comes from
\nthe arbitration panel,\" Komarudin told the Post.<\/p>\n
AriaWest has started arbitration proceedings against Telkom in
\nParis on charges that the state company failed to respect their
\njoint operation (KSO) contract.<\/p>\n
Komarudin said the money Telkom spent to finance the West Java
\nand Banten operations would be discussed once it reached a
\ndispute settlement with AriaWest.<\/p>\n
Komarudin asserted the move had nothing to do with the
\ngovernment's plan to appoint an independent management team to
\ntake over the telecoms operations in the regions until Telkom and
\nAriaWest settle their dispute.<\/p>\n
\"This is an alternative that we think is best.<\/p>\n
\"The government can decide for itself whether or not an
\nindependent team is still necessary,\" he said. (tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-to-finance-ariawests-operation-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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