Indosat plans to sell subsidiaries, focus on telephone business
Indosat plans to sell subsidiaries, focus on telephone business
JAKARTA (JP): State-owned telecommunications company PT
Indosat plans to sell several subsidiaries and its shareholdings
in non-core businesses to focus on the cellular and fixed-line
telephone business, a company senior executive said Tuesday.
Indosat's executive vice president for finance and
administration Habimono Koesoebjono said that aside from focusing
on its international direct dial (IDD) service, it also wanted to
focus on developing cellular services, and local and domestic
long-distance telephone services.
Indosat together with PT Satelindo have been given a duopoly
by the government over the IDD service until 2003.
In line with the country's plan to open up the telecoms
sector, the government has decided to revoke the exclusive rights
of state-owned PT Telkom over local and domestic long-distance
calls in 2002 and 2003 respectively, and will allow Indosat to
provide such services in the domestic market.
"If thus far we only have international direct dial services,
now we need to concentrate on both the international and domestic
telephone services. So we don't want to think about other
things," Habimono told reporters.
Out of 20 companies in which Indosat owns shares in, between
10 to 15 companies would be let go as they are not directly
involved in Indosat's core business, Habimono said, declining to
name the companies.
"We will keep Satelindo and one or two other companies," he
said.
According to Indosat's 2000 annual report, among the companies
not compatible with its core business are the 95.64 percent-owned
PT Sisindosat Lintasbuana, a company which provides information
technology, computer services, and distributes computer software
and hardware products.
Also the 16.67 percent-owned ASEAN Cableship Pte. Ltd. which
repairs and maintains submarine cables, and the 5 percent-owned
PT Datakom Asia which provides multimedia and broadcasting
services.
Habimono noted, however, that the company would not sell of
its assets hastily.
"We won't be selling the whole lot at once, but gradually
depending on how good the market price is," he said.
Indosat's shares are listed in the Jakarta, Surabaya and New
York Stock Exchanges. (tnt)