Asia Link buys 35 percent stake in PT Metrosel

Asia Link buys 35 percent stake in PT Metrosel

JAKARTA (JP): The Holland-based Asia Link B.V., owned by
Indonesia's wealthy Salim family, has bought a 35 percent stake,
worth US$147 million, in PT Metro Selular Nusantara (Metrosel), a
mobile cellular telecommunications firm.

Andry Pribadi, a top executive of the Napan group -- the
majority shareholder in Metrosel -- said yesterday Asia Link was
chosen as a new partner because of its strong telecommunication
networks in Asia.

"The partnership with Asia Link is important for Metrosel's
future operations," he said following the signing of the
acquisition agreement.

Metrosel president Partono Prabowo said his company runs an
Advanced Mobile Phone System (AMPS) with some 20,000 users in
Central and East Java, Maluku and Irian Jaya.

"Metrosel plans to upgrade its AMPS service with Code Division
Multiple Access (CDMA) technology," Partono said, adding that the
company planned to install a 10,000-line network in the eastern
provinces.

He said Metrosel would set up the CDMA service after a tender
was completed involving Korean companies, Hyundai, Samsung and
Goldstar, and United States firms, Qualcomm, Lucent and Motorola.

Before yesterday's agreement, Metrosel, established in
December 1995, was 64 percent owned by PT Centralindo Panca Sakti
Cellular of the Napan Group, 20.17 percent by state-owned PT
Telkom, 9.83 percent by Telkom's employee pension fund, 5 percent
by PT Jatiyuda Selular and 1 percent by an Armed Forces'
cooperative.

Metrosel is now 35 percent owned by Asia Link, a subsidiary of
the Hong Kong-based First Pacific Company, and 40.2 percent by PT
Centralindo Panca Sakti Cellular, he said.

First Pacific, 34 percent owned by the Salim family, also has
an 80 percent stake in PT Indolink First Pacific, a nation-wide
pager operator, he said.

Metrosel's other shareholders include Telkom, Jatiyuda Selular
and the Armed Forces' cooperative, Pribadi said.

Telkom finance director Harry Supangkat said his company's
holding in Metrosel was unchanged.

Besides Metrosel, Telkom has five other subsidiaries dealing
with mobile cellular telecommunications including the AMPS
operators, PT Komselindo (35 percent owned by Telkom) and PT
Telekomindo Primabakti (10 percent), the Global System for Mobile
telecommunication carriers, PT Satelindo (22.5 percent) and PT
Telkomsel (42.72 percent), and the Nordic Mobile Telephone
operator, PT Mobisel (25 percent). (icn)