Indosat expands with seven new projects

Indosat expands with seven new projects

JAKARTA (JP): PT Indonesia Satellite Corporation (Indosat),
the state-owned international telecommunications operator listed
on domestic and foreign stock exchanges, will start seven
projects worth US$150 million in telecommunications-related
businesses.

Indosat's president, Tjahjono Soerjodibroto, said after the
company's shareholder meeting yesterday that the seven projects
would include a join telecommunications venture in Cambodia, a
consortium participating in a telecommunications tender in
Indonesia, intermediate circular orbit global communications
(ICO-GC) and the ASEAN Telecom Holding (ATH).

"The other three projects are joint ventures for the marketing
of the ICO-GC, the development of a regional mobile satellite
system and equity participation in PT Sisindosat," he said.

"The projects will be carried out this year and next year," he
said.

In Cambodia, he said, Indosat owns a 49 percent stake valued
at $6.5 million in Camintel, the firm that will refurbish the
telecommunications infrastructure in the Indo-Chinese country. In
the ICO-GC project, which is controlled by the International
Maritime Satellite Organizations (Inmarsat), Indosat owns a 1.4
percent stake worth $20 million.

In the consortium participating in an Indonesian
telecommunications tender, Indosat will allocate Rp 230.7 billion
($103.82 million), while in the ATH project, which will start in
June, Indosat owns a 16.7 percent stake worth $1 million, he
added.

"In the ICO-GC marketing project, Indosat plans to participate
by paying $10 million for a 60 percent share ownership in a firm
in Indonesia and at least 7.5 percent ownership in another firm
in the United States," Tjahjono said.

He said that Indosat will also provide equity investment of
$10 million for 20 percent ownership in the mobile satellite
telecommunications operator called ACeS and another Rp 5.12
billion ($2.3 million) for 60 percent ownership of PT Sisindosat.

According to Tjahjono, the shareholders have approved the
seven projects.

Commissioners

He said that the shareholders also approved Indosat's
financial report, the appointment of three new commissioners and
the distribution of dividend shares.

"Jonathan L. Parapak, the Secretary General of the Ministry of
Tourism, Post and Telecommunications, will become Indosat's chief
commissioner, while the other two new commissioners are Harry
Supangkat and Yohannes Soeyadi," he said.

The outgoing chief commissioner was Muchtarudin Siregar, the
Secretary General of the Ministry of Transportation who is also
chief commissioner of the flag carrier Garuda Indonesia.

Tjahjono said that Indosat reported Rp 288.9 billion in profit
in 1994.

"Out of the profit, 70 percent will be used for reinvestment,
while the other 30 percent will be distributed to shareholders in
the form of dividends valued at Rp 83.72 per share," he said,
adding that payment will be made in May.

Indosat floated its shares on the New York Stock Exchange
(NYSE), the Jakarta Stock Exchange (JSX) and Surabaya Stock
Exchange (SSE) in October last year. The company raised US$799
million from the sales of 25 percent of its ordinary shares
through the NYSE and around Rp 650 billion ($292.5 million) from
the sales of another 10 percent of its shares on JSX and SSE.

A total of $426.05 million of the total funds from the sales
of Indosat shares were used for early repayment of the
government's high-interest loans from the World Bank and the
remaining $365 million from the Manila-based Asian Development
Bank.

Indosat shares closed at Rp 6,200 on JSX yesterday and at
$37.62 on the NYSE on Monday.

Tjahjono said that he will leave for Singapore, Hong Kong, New
York and Boston in May to make presentations on the results of
the shareholder meeting.(icn)