Malaysia says no plan to quit RI phone venture

Malaysia says no plan to quit RI phone venture

KUALA LUMPUR (AFP): State-owned Telekom Malaysia indicated
yesterday it had no plans to quit a consortium that had won a 15-
year deal to develop a telephone network in Kalimantan despite
reported differences with its Indonesian partner.

Telekom executive director (finance) Mohd Said Ali said the
company was discussing with its main consortium partners "some
aspects of the joint venture arrangement and hope that all
outstanding issues would be resolved soon."

"We hope all outstanding issues will be resolved soon," said
Mohamed Said, responding to a newspaper report that disputes
between Telekom Malaysia and its Indonesian counterpart in a
consortium called Daya Mitra Malindo could unravel the alliance.

The Asian Wall Street Journal reported yesterday that the two
parties had been unable to bridge differences over how to jointly
manage the Kalimantan project.

The newspaper quoted Indonesian officials and telephone
industry executives as saying they believed Telekom Malaysia
might withdraw from the consortium, leaving the Indonesian
partners without a foreigner operator.

But Mohd Said said Telekom Malaysia had put forward proposals
to Tanri Abeng, a shareholder in the Daya Mitra Malindo
consortium, which was given the concession to undertake the
project.

"Telekom Malaysia believes that the suggestions will resolve
the outstanding issues to the satisfaction of all parties
involved."

He said the company was "confident the consortium will
undertake the development and operation of the telecommunications
network in Kalimantan."

He said the company is "responsible to ensure" the project was
successfully completed to provide Kalimantan with a good
telecommunications network in compliance with the contract.

Daya Mitra Malindo is required to install 237,000 new lines by
1999. Under existing plans, Telekom Malaysia is to own 25 percent
of Daya Mitra Malindo, whose largest shareholder, with 29
percent, is PT Intidaya Sistelindomitra.

Telekom shares closed 20 sen higher at 18.90 ringgit on the
local bourse yesterday.