PT Telkom to increase the number of subsidiaries

PT Telkom to increase the number of subsidiaries

JAKARTA (JP): PT Telekomunikasi Indonesia (Telkom), the state-
owned domestic telecommunications firm, will increase the number
of its subsidiaries established jointly with private companies.

Telkom's president Setyanto P. Santosa told legislators in
Commission V of the House of Representative here yesterday that
his company currently controls five subsidiaries, PT Satelit
Palapa Indonesia (Satelindo), PT Radio Telepon Indonesia
(Ratelindo), PT Bangtelindo, PT Pasifik Satelit Nusantara (PSN),
and PT Aplika Nusa Lintas Artha.

He said Telkom is now preparing for the establishment of five
other join ventures. The planned firms are PT Komselindo, which
will run a domestic mobile telecommunications service, PT Media
Citra Indostar, a satellite broadcasting firm; PT Telekomindo, a
telecommunications investor; PT Petrakomindo, a refinery
satellite operator, and PT Telkomsel, a digital
telecommunications firm using the global system for mobile
communications.

Telkom has a 30 percent stake in Satelindo, which was
established with an investment of Rp 500 billion (US$229.56
million) to operate Palapa-C satellites, while other shareholders
include the state-owned international telecommunications operator
PT Indosat and Bimantara Group, which is owned by President's
Soeharto son Bambang Trihatmodjo. The company controls 45 percent
of Ratelindo, which was established jointly with Bakrie Group
with an investment of Rp 200 billion ($91.82 million).

Telkom, Bambang Trihatmodjo, jointly with Siti Hardiyanti
Rukmana, his oldest sister, and PT Seruni each own a 30 percent
interest in Media Citra Indostar, which is worth Rp 40 billion,
The other 10 percent is owned by PT Jaka Perkasa. Telkom will
have a 25 percent ownership in the company within the next 14
years.

Petrakomindo valued at Rp 30 billion, is 30 percent owned by
Telkom, 40 percent by PT Elnusa, the subsidiary of Pertamina and
40 percent by Humpuss Group controlled by Hutomo Mandala Putra,
the youngest son of President Soeharto.

Telekomindo

Telekomindo, whose equity is Rp 100 billion, is 54 percent
owned by the Rajawali group, controlled by Peter Sondakh, 10
percent by Telkom and the rest by foundations and cooperatives.
Komselindo, valued at Rp 300 billion, is 35 percent controlled by
Telkom and 65 percent by PT Elektrindo Nusantara, a Bimantara-
affiliated company.

Elektrindo also owns a 30 percent stake in PSN, which is 40
percent owned by Telkom, 10 percent by the company's executives,
10 percent by Hughes of the United States and 10 percent by
Telesat of Canada. Bangtelindo is 15 percent owned by Telkom,
Indosat and the state-owned telecommunications equipment
manufacturer PT Inti, while the rest is controlled by four
telecommunications cooperatives.

Five cooperatives also own Lintas Artha, which is 25 percent
controlled by Telkom. Other share holders include Indosat and
Telekomindo.

Telkom's director of development Koesmarihati Soegondo said
that her company will hold a 51 percent share in PT Telkomsel,
which will operate the global system for mobile communications
nationally, while Indosat will hold the other 49 percent.

She also said that two other companies are being prepared, PT
Elnusa Yellow Pages and PT Batamindo, set up jointly with
Singapore Telecom. Telkom will own a maximum of a 30 percent
stake in these firms.

Legislator Mohammad Buang said Telkom should be very careful
in encouraging private companies to participate in the
telecommunications business through joint ventures, in which side
activities could hamper the company's main business.

Telekom's president, Setyanto, however, predicted that the
subsidiaries were more likely to support Telkom's financial
condition, though real results would probably not be gained in
the next three or five years.

He also said that Telkom is inviting professionals, academic
experts and executives of private and state-owned companies to
cooperate in establishing high-tech information infrastructure to
improve the competitiveness of Indonesian businesses.

Setyanto said the information and telecommunications
technologies are very important to support the activities of
service and manufacturing industries.

"The planned development of the national information
infrastructure will be vital for accelerating business
development in the country. As the first step, Telkom will
established an intelligent network and integrated service digital
network in five cities in May 1995," he said.

He said that the total investment for the establishment of the
systems in Jakarta; Bandung, West Java; Surabaya, East Java;
Medan, North Sumatra, and Batam, Riau will be $11 million. (icn)

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