PT Telkom plans to construct tower to improve service

JAKARTA (JP): The state-owned domestic telecommunications operator PT Telekomunikasi Indonesia (Telkom) will construct a tower at its Jakarta office to improve telecommunications service, Minister of Tourism, Post and Telecommunications Joop Ave said.

"The construction of the 350-meter tower, including the antenna, will be self-financed by Telkom," Joop told reporters after meeting with President Soeharto at Bina Graha here yesterday.

He said that the construction of the tower will begin "soon" and will be completed in 1996.

Joop said the planned tower, costing about Rp 80 billion (US$36.76 million), will improve inter-connected networks between Java and Sumatra and will be fully utilized by Telkom.

Meanwhile, Telkom, campaigning for accuracy, responsive and sympathetic services, has steadily minimized trouble figures from over the last three years.

Joop said that the company has also increased the successful call ratios (SCR) of both local and long distance services to 49.98 percent and 45 percent respectively.

The international standard of world class telecommunications operator requires a minimum SCR of 90 percent and trouble figure of 0.029 percent.

Indosat

Joop said that he also reported to Soeharto about the government's plan to sell part of the shares of the state-owned international telecommunications firm PT Indosat later this year.

"We expect the initial public offering will take place on the New York Stock Exchange in October," he said. He added that he will join Indosat's road shows to London and New York.

He also said that starting on Sept. 13, Indosat will hold domestic road shows at several big cities, including Jakarta and Bandung.

"Merrill Lynch of the United States, which has been appointed as Indosat's lead underwriter, will invite 25 international investors to participate in the domestic road shows," he said, adding that the price of the shares had not yet been decided.

Indosat, the first state-owned firm to float shares abroad, plans to offer 25 percent of its shares on the New York Stock Exchange and another 10 percent on the domestic stock markets. The government will retain 65 percent ownership in the firm.

Indosat, the country's largest corporate taxpayer in 1991 and 1992, gained a net profit of Rp 251.49 billion last year -- about six percent higher than 1992's profits of Rp 237.27 billion. (icn)