Indosat wants a stake in PT Abacus

JAKARTA (JP): State-owned international telecommunications firm PT Indosat is eying a stake in PT Abacus Indonesia, a reservation service company partly owned by national flag carrier Garuda Indonesia.

Garuda finance director Achmad Subianto said Saturday Abacus was negotiating with Indosat about the share acquisition.

"Indosat is interested in buying between 5 percent and 10 of PT Abacus," he said.

He refused to give details of when negotiations would be finalized.

Indosat, which is listed on the New York and Jakarta stock exchanges, was previously reported to want up to 20 percent of Abacus.

Abacus's business is its computerized reservation system. Garuda acquired a two percent stake worth US$18 million in the Singapore-based firm early in 1994.

The Abacus system, necessary to boost Indonesia's civil aviation and tourism industries, covers hundreds of hotels and airlines throughout the world.

Minister of Transportation Haryanto Dhanutirto said earlier this year Abacus Indonesia was expected to make Rp 1.98 billion in profit last year, up from Rp 113 million in 1995 and was tipped to make Rp 1.63 billion this year.

Subianto said Abacus Indonesia needed sophisticated telecommunications infrastructure which would support Garuda's reservation system worldwide.

He said Indosat, with its modern telecommunications networks and international links, would be the appropriate party to participate in Abacus Indonesia.

Indosat's executives unavailable for comments.

But Indosat's director Safwan Natanegara confirmed recently the company was eying a stake in Abacus.

He said Indosat, through its subsidiary PT Sisindosat, had set up PT Electronic Data Interchange, a joint venture firm, with the state-owned port management firm PT Pelabuhan Indonesia II, which runs Jakarta's Tanjung Priok port. (icn)