JP/13/Telkom
House questions Telkom's $1.8b mega project
Rendi A. Witular The Jakarta Post Jakarta
The House of Representatives grilled state-owned telecommunication company PT Telkom on Wednesday over its US$1.8 billion projects amid rumors about collusive practices in the tendering process for the projects.
During a hearing with House Commission IV, which oversees telecommunication, infrastructure and transportation, legislator Akhmad Muqowam warned Telkom that the tender process should be conducted fairly and transparently.
"Telkom must be professional in carrying out the tender process, considering the huge amount of money involved in the project," said Akhmad, who chairs the telecommunication subcommission.
In an effort to enhance its telecommunication infrastructure, Telkom launched a groundbreaking project called T-21 in November, 2001. The T-21 actually comprises three projects: developing 1.6 million telephone lines for fixed wireless Code Division Multiple Access (CDMA; a cellular technology system which offers clearer sound, wider coverage, smoother transmission and multimedia facilities); upgrading the switching system, regional junction and access networks; and developing a fiber-optic transmission network. The projects are scheduled to commence in 2002 and finish in 2005.
After the hearing, Akhmad told The Jakarta Post that he had heard several rumors about irregularities during the tendering process for the projects, but refused to elaborate further.
Under Telkom's schedule, the tender process for all the projects was to have been completed in August this year. However, the company delayed the tender plan due to "technical problems," and has thus been able to complete the bidding process for only part of the CDMA project, which was won by South Korean firm Samsung Electronics Co.
Rumor has it that the delay was caused by people in President Megawati Soekarnoputri's inner circle, who allegedly intervened in the tender process and backed one bidder.
Telkom spokesman Bambang Edi Praptono has denied that the company was under pressure from any particular party in selecting bidders.
"There was no intervention; the delay was merely due to technical problems," said Bambang, adding that the victorious bidders would be announced in November or December of this year.
Bidders for the project include some of the world's giant telecommunication companies, such as Ericsson Consortium, Hyundai Corporation, Motorola Inc., Alcatel Consortium, Siemens Consortium, NEC Consortium, LT Consortium (Lucent), Samsung Electronics, ZTE Corporation and Huawei Consortium.
Considering the huge investment and the complexity of the projects, Telkom has divided the projects into six "packages", with each of the three projects -- CDMA, Switching, and Transmission -- comprising two packages each.
CDMA Package 1, which is worth US$251.4 million, covers the areas of Sumatra and Greater Jakarta; while CDMA Package 2, worth US$317.6 million and won by Samsung, covers Central Java, Yogyakarta, East Java, Kalimantan, Bali, Nusa Tenggara, Sulawesi and other islands located in eastern Indonesia.
Switching Package 1 is worth US$296.5 million and covers Sumatra and Greater Jakarta; while Switching Package 2 is worth US$381.2 million covers East Java, Kalimantan and eastern Indonesia.
Transmission Package 1, worth US$283.6 million, will link the provincial capitals of Banjarmasin, South Kalimantan, and Samarinda, East Kalimantan; and Transmission Package 2, worth US$363 million, will link the provincial capitals of Makassar, South Sulawesi, and Palu, Central Sulawesi.