PT Indonesian Satellite Corp. (Indosat) Monday said its net

PT Indonesian Satellite Corp. (Indosat) Monday said its net
profit for 2002 fell significantly to Rp 336.25 billion (US$37.7
million) from Rp 1.453 trillion the previous year due to the
higher cost of goodwill amortization.

The cost of goodwill amortization rose to Rp 753.5 billion
from Rp 321.2 billion after the company acquired cellular unit PT
Satelit Palapa Indonesia last year.

The company said it also suffered from higher provision for
doubtful loans, which increased to Rp 287.79 billion as of Dec
31. from Rp 19.65 billion a year earlier.

The company didn't give further details. It said it will issue
a press release later Monday.

For 2002, the company's revenue rose 32 percent to Rp 6.767
trillion from Rp 5.138 trillion, due to he higher contribution
from its cellular units, Satelindo and Indosat Mobile Multi
Media, or IM3.

The cellular units contributed Rp 2.138 trillion in revenue,
up 21 percent from Rp 1.770 trillion a year earlier.

Revenue from the cellular units contributed 32 percent to the
company's total revenue.

Indosat said revenue from its core business, international
call services, fell slightly to Rp 2.137 trillion from Rp 2.157
trillion in 2001.

The company is 42 percent owned by Singapore Technologies
Telemedia Pte. Ltd., a unit of Singapore Technologies Ltd., while
the Indonesian government holds a 15 percent stake.