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)