Batam's telecom venture

JAKARTA (JP): The state-owned PT Telekomunikasi Indonesia (Telkom) has signed an agreement with PT Batamindo Investment Corporation to set up a joint venture company, PT Batam Bintan Telekomunikasi, with an investment of US$5 million.

A Telkom statement said yesterday that there were five million shares, each with a nominal value of $1.

The joint venture is 95 percent owned by Batamindo Investment Corporation and 5 percent by Telkom.

Batam Bintan Telekomunikasi, based in Batam, is designed to operate telecommunication network services, called wirelines, on the islands of Batam and Bintan, both in Riau province.

The new company will provide wirelines primarily for the Batam Industrial Park, the Bintan Beach International Resort and the Bintan Industrial Estate.

The chief executive of Telkom, A.A Nasution, and the director of Batamindo Investment Corporation, S.A. Habibie, signed the agreement here Saturday.

The joint venture replaces a venture set up in 1992 between PT Telekomindo Primabhakti-Singapore Telecom International and Batam Investment Corporation.(kod)