PT Telkom preparing to go international

PT Telkom preparing to go international

JAKARTA (JP): State-owned domestic phone operator PT
Telekomunikasi Indonesia (Telkom) will start running
international services in 2002 or 2003, Director of Operation and
Marketing Komarudin S.K. said on Thursday.

"The new telecommunications law to be implemented in September
would let us prepare the way," Komarudin said after launching the
American Express Telkom Credit Card.

Under the new law enacted last year, the government would
eliminate all kinds of monopoly and exclusivity rights currently
held by Telkom and state-owned PT Indosat.

Indosat and its subsidiary Satelindo hold the exclusive right
to provide international telecommunications services until 2004,
while Telkom controls fixed-line telecommunications until 2010.

The government is pushing to revoke the rights earlier to
either 2002 or 2003 after which all operators, local and
international, could service the country.

"If the government speeds up the expiration date of
(Indosat's) exclusivity rights to 2002 or 2003, other telephone
operators could start operations that year," Komarudin said.

Telkom will start preparing the infrastructure this year, he
said.

The American Express Telkom Credit Card was launched on
Thursday by American Express in collaboration with Telkom at a
ceremony at the Shangri-La Hotel.

Amex vice president and country manager Atul Mathur said that
customers in Indonesia have become more demanding now that the
country had passed many of its difficulties.

"The new card addresses the changing needs of Indonesian
consumers who are getting more discerning about what they want
from their credit cards," he said.

Komarudin said the credit card, to be offered to the public on
Aug. 5, is targeted for Telkom customers in Greater Jakarta,
especially the business segment.

The segment comprises some 20 percent of Telkom's 2 million
customers in the Greater Jakarta area, he said.

Because customers could use the card for phone bill payments,
the card scheme would benefit Telkom as it would ensure a
continuous cash flow to the company, Komaruddin said.

"Before, if a customer pays his or her bills four months late,
the phone would be disconnected. (With the credit card) there
would be no need because Amex would pay the phone bills for the
customer," he said.

Mathur said card holders would also be able to choose between
three Telkom services -- call forwarding, call waiting, or
conference call -- at no charge for the first year. (10)