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