British firm invests $30 million in Astratel

British firm invests $30 million in Astratel

JAKARTA (JP): British-based equity investor CDC Capital
Partners injected US$30 million into telecommunications company
PT Astratel Nusantara, taking 22.5 percent of the company's
shares in return.

Astratel president Michael Ruslim said the capital injection
was a follow-up to the strategic alliance formed by Astratel's
parent company, publicly listed Astra International, and CDC
Capital in June this year.

The money will be used by Astratel to develop its GSM-1800
mobile telephone network in Sumatra.

Astratel is expected to begin commercial operations of its
mobile telephone service by the first quarter of 2001 in Medan,
North Sumatra, and Batam, Riau.

It received in 1998 a government license in principal to
operate a mobile telephone network in Sumatra and surrounding
areas.

The company has a 35 percent stake in PT Pramindo Ikat
Nusantara, a partner of state-owned telecommunications firm PT
Telkom in the Joint Cooperation Scheme, under which it is
authorized to build and operate fixed-line telephone services in
Sumatra until 2010.

Astratel also will look to develop other potential
telecommunications and Internet infrastructure-related businesses
using some of CDC's $30 million investment.

The investment agreement was signed on Thursday by Astra
International president Teddy P. Rachmat and CDC managing
director Robert Binyon.

Astra International and CDC, which has invested some $2.5
billion on projects, including telecommunications-related
businesses, in over 50 developing countries, entered their
strategic alliance in June.

"CDC's investment in Astratel demonstrates that even during
these uncertain economic times in Indonesia, a well-managed
company can still raise financing from investors who have the
vision and understanding to take advantage of the reforms taking
place in the telecommunications sector," Rachmat said.