Telkom to finish Ariawest buyout<\/p>\n
JAKARTA: PT Telekomunikasi Indonesia aims to finalize this
\nweek plans to pay US$390 million to take over a telecom company
\npartly owned by AT&T Corp of the U.S.<\/p>\n
The company, PT Ariawest International, has been at
\nloggerheads with state-owned Telkom over a revenue-sharing pact
\nwhich soured after the 1997-98 Asian financial crisis.<\/p>\n
Telkom will pay $120 million for Ariawest's assets and take
\nover $270 million worth of debt over five-and-a-half years, a
\nsource involved in the deal told Dow Jones Newswires.<\/p>\n
\"Payments will be made every six months,\" said the source, who
\nspoke on condition of anonymity.<\/p>\n
Ariawest began offering local call services in West Java in
\nthe mid 1900s in one of five agreements between Telkom and
\nvarious foreign-led joint ventures. Telkom, which until this year
\nhad a monopoly on local call services, took 30 percent of
\nrevenues from these joint ventures, locally known as KSOs, in
\nreturn for allowing the companies exclusive rights to build and
\noperate fixed lines. -- Dow Jones<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-to-finish-ariawest-buyout-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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