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.