Mon, 11 Apr 1994

PT Inti hopes to increase sales, profits

BANDUNG, West Java (JP): PT Industri Telekomunikasi Indonesia (Inti), the state-owned telecommunications equipment manufacturer, targets a seven percent increase in sales and profits this year, the company's president says.

Arsyad Ismael told reporters visiting the company over the weekend that Inti's sales increased to Rp 344.58 billion last year from Rp 257.74 billion in 1992, while its profit rose to Rp 51.3 billion from Rp 33.33 billion in 1992.

The company's sales were recorded at Rp 184.92 billion in 1990 and Rp 280.7 billion in 1991 and its profits at Rp 25.48 billion and Rp 45.78 billion, respectively.

Inti, which produces telecommunications switching boards, small earth stations, transmission facilities and telephone terminals, sells its products to PT Telekomunikasi Indonesia (Telkom), the state-owned domestic telecommunications monopoly, PT Indosat, the state-owned international telecommunications service firm, government institutions and private companies. It has also exported small earth stations to Malaysia.

Arsyad said Inti could actually increase its sales and profits if Inti were allowed to manufacture components for telecommunications projects financed by foreign aid.

"So far, Indonesia is required to purchase components for its telecommunications projects from countries providing financial aid for them," he said.

The government has assigned Telkom to install five million new telephone lines throughout the country within the just begun Sixth Five Year Development Plan (Repelita VI) period. Within the Repelita V period, Telkom constructed three million telephone lines, of which Inti provided the materials for 2.1 million lines.

Inti has expanded its annual production capacity 75 percent to 700,000 telephone lines by operating a robotic instrument which utilizes surface mounting technology. The expansion cost Rp 3 billion.

Establishment

Inti, which is supervised by the Agency for the Management of Strategic Industries (BPIS), was set up in 1966 when the state- owned post and telecommunications company PN Postel signed an agreement with Siemens AG of the Germany to establish a research and development center for the manufacture of telecommunications equipment. In 1974, the center became Inti under the supervision of the Ministry of Tourism, Post and Telecommunications. The supervision was transferred to BPIS in 1989.

Arsyad said Into, in its attempts to enter the international market, has cooperated with several foreign telecommunications companies, including Siemens, BTM of Belgium, TRT/Phillips of France and NEC of Japan.

Inti, which recently introduced mobile public telephone services, has a new headquarters, a 10-story building in Bandung. The Rp 18.8 billion building will be inaugurated by President Soeharto today, along with other telecommunications projects, including the Telecommunications Institute in Bandung and outside-plant maintenance centers in seven cities valued at more than Rp 2 trillion. (icn)