PT Daya Mitra selects UK's C&W as new partner

PT Daya Mitra selects UK's C&W as new partner

JAKARTA (JP): PT Daya Mitra Malindo, the private joint-venture
firm assigned to develop a telecommunications network in
Kalimantan, ended an internal dispute with the selection of
Britain's Cable & Wireless as its new shareholders, replacing
Telekom Malaysia.

Daya Mitra announced that in a deal inked yesterday, the
company is now 29.03 percent owned by PT Intidaya
Sistelindomitra, 25 percent by Cable & Wireless, 24.19 percent by
PT ALatieF Nusakarya Corporation, 9.68 percent by TM
Communications of Hong Kong, 2.42 percent by the tea producer
cooperative Kopthindo and 9.68 percent by the Singapore-based
American International Group.

Daya Mitra, which last year was awarded a 15-year joint
operation contract for domestic telecommunication services, was
experiencing internal problems with Malaysia Telekom. The dispute
has stalled the hand-over of the management of the existing
telephone networks in Kalimantan from the state-owned PT Telkom
to Daya Mitra, which was originally scheduled for January.

Under an agreement signed with Telkom last year, Daya Mitra
must install 237,000 new lines in Kalimantan by 1999 and operate
them together with the existing ones for 15 years.

Though Daya Mitra failed to begin installing its new telephone
lines in January, the company will not be penalized by Telkom,
which set the end of this month as the deadline to solve the
problem.

Cable & Wireless previously failed in two other
telecommunications tenders in Indonesia -- for 25 percent
ownership of PT Satelindo, which went to German DeTeMobil, and
17.28 percent ownership in PT Telkomsel, which was awarded to PTT
Telecom of the Netherlands. (icn)