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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