PT Excelcomindo expands cellular networks in Bali

NUSA DUA, Bali (JP): PT Excelcomindo Pratama which operates the GSM-XL has expanded its cellular networks in Bali in a nationwide expansion move.

Company president Y.W. Junardy said yesterday his company had installed seven Radio Base Stations (RBS) in Bali, mostly in the commercial and tourist areas in the south of the island.

"By the end of this year we will operate 20 RBS in Bali," he said after signing a US$400 million loan with 22 overseas banks here.

He said that about 5,000 people in Bali were expected to subscribe GSM-XL by the end of 1997.

The company has so far signed roaming service agreements with 28 overseas operators in 20 nations. The deals will enable GSM-XL subscribers to use their handsets in Australia, Britain, Hong Kong, Thailand, Malaysia, the Philippines, Taiwan, Singapore and some European countries.

Excelcomindo, established eight months ago, currently operates 289 RBS and has 65,000 customers in Greater Jakarta, West Java and East Java.

Excelcomindo, the youngest of Indonesia's three global system for mobile communications (GSM) operators is competing with PT Telkomsel and PT Satelindo.

Junardy said the $400 million loan would mature in seven years had an interest rate of 1.55 percent.

"The annual interest rate will be gradually lowered to 1.12 percent until its maturity, depending on the debt equity ratio," he said.

The loan was arranged by Sakura Finance Asia Ltd, ING Barings, ANZ Investment Bank and Chase Manhattan Asia Ltd. Among the participating banks are BRI Finance Ltd of Hong Kong, Mitsui Leasing and Development LTD, DKB Merchant Bank Ltd of Singapore and Tokyo's Korea Development Bank.

Managing director of the global media and telecommunications group of Chase Manhattan, Robert Ranocchia, said the syndication reflected international confidence in Excelcomindo in particular and in the Indonesian economy in general.

He said the success of the syndication was also based on Excelcomindo's performance and the Indonesian telecommunications industry.

Analysts predict that cellular operators in Indonesia will generate revenue of at least $700 million by the end of this year. This is expected to increase by at least four times by the year 2000.

Junardy said the loan would be used to finance Excelcomindo's expansion plan which includes new infrastructure, new information technology and human resources development, he said.

He said Excelcomindo planned to start serving Surakarta and Semarang, Central Java, and Yogyakarta next month and Medan, North Sumatra, in September.

Excelcomindo is jointly owned by Nynex Corp of the United States, Mitsui of Japan, the Asian Infrastructure Fund and Indonesia's PT Telekomindo Prima Bhakti as the majority shareholder.

Telekomindo is a unit of the Rajawali Group which is con trolled by businessman Peter Sondakh.

Rajawali gained international attention in 1990 as a result of Rajawali's controversial takeover of the debt-ridden cigarette maker PT Bentoel. (icn)