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)