Ratelindo to spend $500m on phone lines

JAKARTA (JP): The telecommunications company PT Ratelindo, a subsidiary of PT Bakrie & Brothers, plans to spend US$500 million increasing its line capacity to 500,000 fixed telephone lines by 1999, Ratelindo's senior vice president said yesterday.

Nalin Rathaod said the company installed 75,000 fixed telephone lines in Jakarta in 1996 and expected to install another 100,000 lines in 1997.

He said that U.S. Exim Bank and Chase Manhattan bank would provide the $500 million for the project.

Ratelindo plans to expand its coverage to West Java in the next few years.

He said the firm spent around $500 installing one telephone line compared to PT Telkom's cost of $1,400 a line.

Bakrie & Brothers which has telecommunications, infrastructure support, plantation and strategic investment businesses expects to record a net profit of Rp 190 billion for 1996. Its net profit is projected to reach Rp 235 billion for 1997 and Rp 300 billion for 1998.

He said the firm's total revenue was projected to reach Rp 1.3 trillion for 1996, Rp 3 trillion for 1997 and Rp 5.3 trillion for 1998.

He said that around 40 percent of last year's profit was derived from infrastructure-related business, 35 percent from telecommunications, 20 percent from plantations and 5 percent from strategic investments. (09)