Satelindo targets higher profit
JAKARTA (JP): Telecommunications operator PT Satelindo expects to net Rp 1.1 trillion (US$423 million) in revenue this year and plans to provide direct-to-home (DTH) television service next year.
Company president, Iwa Sewaka, said here yesterday that Satelindo's net profit was projected at Rp 120 billion this year.
"During the first six months, we gained about half of this year's targeted revenue," he said.
Satelindo last year booked Rp 595 billion and Rp 85 billion in revenues and net profit respectively, he said.
He said of the Rp 85 billion profit in 1996, Rp 20 billion was allocated for dividend payments.
The company's debts reached US$270 million by the end of 1996, Iwa said.
Satelindo, set up in January 1993, is one of the private companies in the country licensed by the government to run satellite telecommunications services. The company also runs the Global System for Mobile Communications (GSM) cellular telephones and international telecommunications.
Satelindo is 45 percent owned by PT Bimagraha Telekomindo -- a joint venture between the Bimantara Group, owned by President Soeharto's son Bambang Trihatmodjo -- and the Artha Graha Group owned by Tomy Winata, a prominent businessman with a close link to the Armed Forces. The other shareholders are DeTeMobil of Germany, PT Telkom and PT Indosat.
Iwa said Satelindo would operate a new satellite to provide DTH television which would allow users to enjoy satellite broadcasting service by using small dishes with a diameter of between 100 and 120 centimeters.
"We plan to cooperate with Indovision, a pay-television provider which will operate direct broadcasting system satellites. This will save users money in buying decoders and satellite dishes which are adaptable with services from Indovision and Satelindo," he said.
Satelindo would look for partners to support the new business, he added.
"There are about 30 million television sets in Indonesia. It's very prospective even if we can only grab 10 percent of the figure," he said.
He refused to give further details about the planned DTH business.
Satelindo currently operates two satellites, the Palapa-C1 and Palapa-C2, the country's third generation satellite system.
Company managing director for satellites, Janto Warjanto, said that four Ku bands of the Palapa-C1 currently in orbit would be used to support the DTH service.
"We have to create business. The demand always exists," he said.
Satelindo was recently hit by massive complaints due to its cellular billing errors which occurred after the company claimed to have improved its billing system.
Iwa reiterated yesterday that Satelindo would compensate customers for recent billing errors.
Satelindo's information technology general manager, Dede Rusnandar, said that out of 750,000 billing charges sent to customers in the last few months, 37,000 had problems. (icn)