Government to evaluate joint telecoms projects
Government to evaluate joint telecoms projects
JAKARTA (JP): The government will evaluate early next year
five private joint ventures holding 15-year joint operation
contracts to install and manage telecommunications networks in
five operational regions of the country.
"I agree with House members that evaluation of the joint
operation projects is necessary. The evaluation will begin next
January after the projects go for a one-year period," Minister of
Tourism, Post and Telecommunications Joop Ave said yesterday at a
hearing with House of Representatives Commission V for
transportation, public works, tourism and telecommunications.
A number of suggestions flowed in yesterday concerning the
privatization of telecommunications networks in Sumatra,
Kalimantan, West and Central Java and the country's eastern
region covering Sulawesi, Maluku, Irian Jaya and Nusa Tenggara.
Budi Haryanto of the ruling Golkar political organization
suggested that the government should conduct assessments on the
private firms' plans to transfer both technologies and managerial
skills to the state-owned PT Telkom, which already handed over
its networks in the contract areas.
Another commission member, Achmad Saad Harjono of Golkar, said
that during his recent visits to several provinces, he learned
that the private firms applied different methods in handling
their projects.
"It will be better if the government sets a kind of general
guidelines for the private firms in conducting their projects,"
he said.
Telkom signed the joint operation contracts last October with
five joint ventures, which will install 2.2 million telephone
lines and operate them along with the existing lines.
The projects, effective as of January this year, are part of
the government's program to install five million telephone lines
within the current Sixth Five-Year Development Plan period, which
will end in March 1999.
The five private joint ventures include PT Pramindo Ikat
Nusantara, which is responsible to install some 500,000 new
telephone lines in Sumatra; PT Aria West International,
responsible for 500,000 lines in West Java and PT Mitra Global
Telekomunikasi Indonesia, responsible for 400,000 lines in
Central Java.
The other two companies are PT Daya Mitra, which will install
237,000 lines in Kalimantan and PT Bukaka Singtel, which will
install 403,000 lines in the eastern region.
Each of the joint ventures is responsible for operating and
managing telephone lines in its contract area for 15 years, until
2010. In addition, each of them have been given three years,
until 1999, to install the numbers of new telephone lines
specified in their contracts.
Joop said yesterday that even though the planned evaluation
will be set for next year, he believed the joint operation
projects had run well so far.
"Many developed countries were surprised when Indonesia
introduced the joint operation projects, involving overseas
world-class telecommunications operators," he said.
"I also believe that the foreign operators involved in this
projects have their own interests to become superstars."
He said, for instance, Pramindo Ikat, which is partly owned by
France Cable et Radio, a subsidiary of France Telecom, will and
must perform its project in Sumatra properly.
"France Telecom will float part of its shares in Paris early
next year. Its share price will be affected if the company's
project in Sumatra doesn't run well."
Besides, to finance the development of its telecommunications
project in Sumatra, Pramindo Ikat has secured US$400 million in a
syndicated loan facility pledged by 31 financial institutions.
"This is an example to show that the company has the commitment
in carrying out its project," Joop said. (icn)