Indosat lanches expansion of non-core business projects
Indosat lanches expansion of non-core business projects
JAKARTA (JP): Despite the country's political and economic
uncertainties, publicly listed international telecommunications
firm PT Indosat launched on Friday its fourth non-core business
project in two months.
Indosat president Tjahjono Soerjodibroto said the firm's
spending for non-core business activities had not been affected
by the turbulence in the country.
"It's business as usual for us," he told The Jakarta Post on
the sidelines of the launching of an Indosat TV program. The
launching was also attended by Minister of Education and Culture
Juwono Sudarsono.
The TV program, called Indosat Galileo, will present a popular
scientific quiz to be aired by the private Surya Citra TV station
every Sunday starting on May 2.
The name of the program was taken from the Italian astronomer
and physicist who invented the telescope in 1609.
Tjahjono said the spending was not a direct profit-oriented
investment.
"We want to build an image of Indosat as a firm which cares
about education, science and technology," he said.
He said that it was not a measure to counter the increasingly
popular music TV program and adventure TV serial launched by PT
Satelindo, Indosat's only competitor.
Indosat has launched several cooperation agreements over the
past two months.
The company agreed on Wednesday with Bank Bali and PT Jatis
Enterprise Integration Consulting to develop an Internet-based
shopping service.
Last month, Indosat also agreed with retailer PT Matahari
Putra Prima and local cosmetics maker Martha Tilaar to engage in
an electronics venture.
Indosat was one of the state companies initially to be
included in the government privatization program in the 1998/1999
fiscal year, but was later postponed to the current fiscal year
partly due to a regulations snag.
Tjahjono said the bidding process for Indosat would start
after the new telecommunications bill is approved by the House of
Representatives.
Reports said earlier that three international
telecommunications giants, including Australia's Telstra and
French Telecom, have shown interest to take up the government
stake in Indosat.
Indonesia's general election scheduled for June 7 is expected
to be the country's first open and democratic election after more
than 32 years under the authoritarian rule of former president
Soeharto. Many people fear increasing bloody unrest in the run-up
to the election, which could prompt a massive exodus.
Analysts, however, said Indosat would enjoy a big increase in
incoming calls if a great amount of people do leave the country.
(rei)