Indosat to sign telecom project in Cambodia
JAKARTA (JP): The state-owned international telecommunications company, PT Indosat, currently finalizing negotiations on a project for telecommunication refurbishment in Cambodia, expects to sign the contract next month.
"We expect to conclude negotiations by Monday and sign a contract on the project here on Nov. 10," senior expert of Indosat, D. Habimono Koesoebjono, told The Jakarta Post during a break of the seminar on telecommunications held by the Pacific Telecommunications Council (PTC) at the Borobudur Inter- Continental hotel yesterday.
Under the planned contract, which will be signed by Indosat's president and an official of Cambodia's Ministry of Post and Telecommunications, a joint venture will be established with a Cambodian party in developing the project, he said.
In September, Indosat won a lucrative project for Cambodia's domestic telephone network, including the installation of 10,000 phone lines and renovation of the old cellular network utilized by UNTAC (United Nations Transitional Authority in Cambodia).
The network, originally installed two years ago at a cost of US$50 million by Telstra of Australia, is currently in disrepair.
Another source at the recently public-listed company said the refurbishment project will be worth twice that of the original installment and Indosat is likely to invest US$15 million in the joint venture.
Six international telecommunications companies participated in the tender, including Telstra, France Telecom, DeTecom of Germany, two Thai companies Shinawatra and CP Telecom, and Korea Telecom.
Meanwhile, Minister of Tourism, Post and Telecommunications Joop Ave told reporters yesterday that the government encourages both Indosat and the state's domestic telecommunications operator PT Telkom to pursue feasibility studies on telecommunication projects in various developing countries.
Joop told the two-day seminar that Indonesia, and several other countries in the Asia-Pacific region, still need to aggressively increase its telecom-density.
"Let me encourage PTC and its members to help these countries in building their telecom infrastructures," he said.
He also said early next year Telkom will conduct studies on telecommunication projects in African countries, including Tanzania and Somalia, which will be financially supported by Japan.
Inmarsat-P
Meanwhile, Indosat's president Tjahjono Soerjodibroto told reporters that his company will participate in a US$2.6 billion mobile satellite telephone project proposed by the International Maritime Satellite Organization (Inmarsat).
"This is a future telecommunications business. We will be left behind if we do not take part," he said.
Inmarsat is a leading global mobile satellite communications operator, owned by 76 signatories -- telecommunications firms from all over the world. Indosat became a member in 1986, and controls a 0.26 percent stake in the London-based organization.
Tjahjono said his company has not yet discussed financial conspiracy in the project which is called Project 21.
The project was first announced in 1991, as a major initiative to develop advanced satellite based personal mobile communications system to meet market demands for the remainder of the decade and into the next century.
The principal development of the project's program is called Inmarsat-P which will use 12 satellites in an intermediate circular orbit system for its space segment. Scheduling for full service availability will be in September 2000.(icn)