PT Excelcomindo expands cellular networks in Bali
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)