Indosat invests Rp 50b to set up multimedia firm
JAKARTA (JP): The state-owned international telecommunications carrier PT Indosat has invested Rp 50 billion (US$21.4 million) to set up a new multimedia company.
A senior Indosat executive, Budi Prasetyo, told The Jakarta Post yesterday that the new company, PT Indosat Mega Media (IMM), is 99.5 percent owned by Indosat and 0.5 percent by Indosat's employee cooperative.
"The agreement establishing IMM was officially signed on Sept. 25," he said.
He said that choosing the multimedia business was part of Indosat's diversification plans.
Indosat had earlier announced that it was exploring the possibility of providing multimedia services and would budget $13.5 million for the development of a pilot network in 1996.
The company recently acquired 40 percent of PT Yasawirya Tama Cipta, a Jakarta-based firm producing video recordings for television broadcasters.
Cellular
Indosat, together with the state-owned domestic telecommunications operator PT Telkom, plans to help in the establishment of a 500-meter tower in Kemayoran, Central Jakarta. The planned tower is expected to become a multimedia center. It is being constructed by PT Indocitra Graha Bawana, a consortium involving businessmen Sudwikatmono, Prayogo Pangestu and Henry Pribadi.
Meanwhile, PT Telkomsel and PT Satelindo, two operators of the Global System for Mobile Communications (GSM), in which Indosat owns 35 percent and 7.5 percent, respectively, plan to launch service expansions in South Sulawesi and North Sumatra.
Satelindo, whose subscribers can use its GSM service in 14 countries under roaming agreements, is scheduled to begin operating in North Sumatra today.
Satelindo will use seven Base Transceiver Stations (BTS) at the Belawan seaport, the Pulau Brayan industrial zone, TVRI's television complex, the Tembung area, Garuda area, Padang Bulan area and the Cinta Damai area, all in North Sumatra, the company said in a statement.
"By Oct. 28, there will be a total of 16 BTSs in service in North Sumatra covering Binjai, Titipapan, Bandar Baru, Tuntungan, Simpang Limun, Lubuk Pakam, Perbaungan, Tebing Tinggi, Pematang Siantar, Simarjarunjung and Parapat," the statement said.
Satelindo last month launched its service in East Kalimantan, the company's first expansion outside of Java and Bali.
Telkomsel, Satelindo's only competitor, is scheduled today to launch its service in Ujungpandang, South Sulawesi.
Telkomsel's director, Garuda Sugardo, told the Post yesterday that his company will be the first digital mobile cellular operator to expand GSM service into the eastern part of the country.
"We have six BTSs in Ujungpandang. A total 11 BTS will be in service next month covering Ujungpandang to Pare-pare in South Sulawesi. Three additional BTSs will be activated to cover Sorowako in November," he said.
He said that Telkomsel expects to attract 20,000 subscribers in South Sulawesi by the end of this year.
"Currently there are some 4,000 users of the analog cellular system. The market of a 1.2 million population in Ujungpandang has great potential," he said, adding that Telkomsel's outdoor coverage in the city reaches 95 percent.
According to Garuda, today's expansion, scheduled to coincide with national tourism, post and telecommunications day, is a kind of breakthrough in cellular telecommunications. Telkomsel is also committed to activating in December eight BTSs in Manado, North Sulawesi, and eight others in Jayapura, Timika and Kuala Kencana in Irian Jaya. (icn)