Govt regulating satellite operation

Govt regulating satellite operation

JAKARTA (JP): The government has issued a new regulation
requiring foreign satellite operators intending to enter the
Indonesian market to cooperate with state-owned PT Indosat.

Based on the regulation signed by the Minister of Tourism,
Post and Telecommunications Joop Ave on July 18, the cooperation
also includes the use of satellite transponders set forth in a
joint operating scheme between Indosat and the foreign satellite
operator.

"The operators intending to enter Indonesia are therefore
required to cooperate with Indosat which is designated as the
country's international telecommunications operator," Indosat's
general manager for investor relations, Budi Prasetyo, said after
Indosat's presentation at a capital market conference.

Satellite operators include companies which run spacecraft for
broadcasting, telecommunications or the Global Mobile Satellite
System (GMSS).

GMSS operators eying the Indonesian market are Globalstar,
Odyssey and Iridium. Indosat has acquired several shares in ICO,
a GMSS developed by the International Maritime Satellite.

The country's telecommunications law stipulates that the
involvement of private operators in the Indonesian basic
telecommunications industry will only be permitted on condition
that such firms cooperate with state-owned companies under a
joint-operation, joint-venture or management agreement.

Diversify

Indosat's president, Tjahjono Soerjodibroto, said yesterday
the company would diversify to run four major businesses
comprising telecommunications services, multimedia services,
satellite operators and value-added services.

"Currently we are only operating international
telecommunications services, but in line with our business
strategy, we have invested in several domestic, regional,
international and value-added service businesses," he said.

Among Indosat's 20 current business investments are PT
Telkomsel, a cellular operator (35 percent owned by Indosat), PT
MultiMedia Asia, a regional satellite provider (26.7 percent) and
PT Datakom Asia, a multimedia network and service provider (5
percent).

"In multimedia business, we are looking for opportunities in
many areas which may include television broadcasting," he said.

But he denied that Indosat was planning to acquire Televisi
Pendidikan Indonesia, a private television station which is
currently in financial trouble.

Informed sources said Indosat was also keen to buy shares in
the idle PT Sanitya Mandara, a private firm which gained a
television broadcasting license in Yogyakarta in the early 1990s.

Tjahjono said yesterday Indosat would not consider any
reduction in the international telecommunications tariffs due to
the rupiah's fall against the dollar.

"We won't make any move," he said.

He indicated that if the depreciation was more than 10
percent, Indosat would likely suggest the government reduce the
tariffs. (icn)