PT Telkom to boost performance

BANDUNG, West Java (JP): State-owned PT Telekomunikasi Indonesia (Telkom) launched yesterday a self-drive transformation program, called T-2001, aimed at boosting its performance to become a world-class operator by the year 2001.

Telkom's director for operations, Dadad Kustiwa, said that the program has been ready since July 1995 to follow-up the change in the company's status into a limited liability firm in 1970.

Telkom, the provider of domestic telecommunication services, floated last year 19 percent of its 9.33 billion shares on the New York, London, Jakarta and Surabaya stock exchanges. The company raised Rp 2.3 trillion (US$983 million) from the domestic offering and $519.1 million from the overseas offering. From the funds raised domestically, Rp 1.85 trillion went back to the company, while the remainder went into the government's coffers, together with the funds raised from the overseas offering.

Dadad said yesterday that as a micro managerial strategy, Telkom's goals in 2001 would be depicted in 73 indicators representing the performances of five sectors: human resources, financial and accounting management, management and business style, information system and network technology/service.

Out of the 73 indicators, Telkom has set 10 major ones to be reached within the next five years, including a less-than-three- day service for the installation of lines, a reduction in the rate of complaints to less than 0.5 complaint per 100 subscribers per month and the increase in telephone density from 1.6 percent to 7 percent of the population.

The 1996 to 2001 transformation program consists of 13 major plans prepared by two teams responsible to Dadad as Telkom's chief operating officer.

Dadad said that in preparing T-2001, Telkom was assisted by several partners including AT&T, Ernst & Young and Bellcore.

"There will be an annual evaluation on the T-2001 implementation," he said.

Telkom currently hires one employee to serve 80 telephone lines, as compared to 1:34 in 1991. The company targets to increase its productivity to one person to every 225 lines by 2001.

Telkom last year gained a net profit of Rp 907 billion ($387 million), up 14 percent from Rp 795 billion in 1994.

The company's total operating revenues increased by 26 percent to Rp 5.1 trillion ($2.1 billion) over the previous year. (icn/17)