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)