Indosat to spend $1.1b in 2004

Indosat to spend $1.1b in 2004

PT Indonesian Satellite Corp., the country's main overseas call operator, said it's spending as much as US$1.1 billion through the end of 2004 expanding its cellular business and wireless network.

About 75 percent of that expenditure will go toward growing Indosat's cellular unit, Wityasmoro Sih Handayanto, the company's director of business development, said at a presentation in Jakarta on Friday.

"We will use cash flow and vendor financing," said Wahyu Wijayadi, Indosat's director of fixed communication and multimedia. "We may seek funds from outside financing."

The company spent between $450 million and $500 million this year and may spend a further $600 million in 2004, he said.

Indosat expects to have 6 million subscribers by the end of this year, up from 5.8 million in mid-December, said Hasnul Suhaimi, the company's cellular marketing director. It expects to add between 1.5 million and 2.5 million in 2004, he said.

Indosat plans to pay at least 30 percent of its 2003 profit as a dividend, President Director Widya Purnama said. Profit rose 30 percent to 566.6 billion rupiah ($67 million) in the nine months ended Sept. 30.

Indosat is 42 percent-owned by Singapore Technologies Telemedia Pte. -- Bloomberg