Satelindo targets higher profit

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)