Deutsche Telekom eying telephone project in Java

Deutsche Telekom eying telephone project in Java

JAKARTA (JP): Deutsche Telekom (DT) of Germany, in cooperation with Indonesian partners, is optimistic about winning a contract to establish 500,000 telephone lines in Java.

"We are ready to install 500,000 telephone lines in West or Central Java," said Gerd Tenzer, a DT executive.

Tenzer, who accompanied German Minister of Post and Telecommunications Wolfgang Botsch at yesterday's press conference, said that his company will provide technology for the telephone lines.

Botsch ended his three-day visit in Indonesia yesterday, during which time he witnessed the signing of a draft agreement on the acquisition of a 25-percent stake, worth $586 million, of PT Satelindo, a private firm operating satellites, cellular mobile telephones and international calls.

"We will discuss financial affairs for the telephone project soon," Tenzer said.

The government is currently examining bids from 12 consortia for the establishment of two million telephone lines during the current Sixth Five-Year Development Plan (Repelita VI) period, which began in April 1994.

The government is likely to announce at least five winners from the 12 consortia within six months.

During the Repelita VI period the government will install five million telephone lines, of which two million lines will be offered to private companies, while the other three million -- in Jakarta and East Java -- will be assigned to the state-owned domestic telecommunications firm PT Telkom.

The government chose the 12 consortia last September to take part in the tenders for the installation of the two million telephone lines. The consortia are required to include domestic firms, cooperatives and overseas telecommunications firms.

However, executives of the Indonesian Association of Telecommunications Firms warned recently that the government should be very careful in choosing the winners because not all of the consortia have conducted well-prepared surveys.(icn)