Thu, 04 May 2000

SingTel buys 30% of CyberCity

JAKARTA (JP): Singapore Telecommunications (SingTel) has bought a 30 percent share of PT CyberCity Indonesia (CCI), which is developing a 10-hectare site in Kemayoran for domestic and international Internet-related businesses.

"The deal was valued at US$15 million," CCI president Edward S. Soeryadjaya (left) said in a statement here on Wednesday.

The acquisition agreement was signed last week by Edward and Leong Shin Loong (right), vice president of SingTel and chief executive officer of SingNet, the statement said.

Present at the ceremony were vice president of the Jakarta International Trade Fair Yoichi Sato (second left) and Edward's tycoon father William Soerjadjaja (second right).

Edward added that the fund would soon be used for the renovation and rewiring of the Jakarta International Trade Fair building in Kemayoran and for the enhancement of the building's infrastructure to attract domestic and international tenants.

"The fund will also finance the first stage development of three hectares of land into Indonesia's first, dedicated CyberCity," he said.

According to Edwards, tenants in the building will be provided with state-of-the-art facilities and infrastructure as well as services such as a media laboratory, application service provider facilities, incubation facilities and financial and administrative back-up services.

The statement quoted Leong as saying that the investment, the first ever made by Singtel in a foreign country, reflected the company's strong confidence in the future prospects of CyberCity.

CCI is a subsidiary of L&M Group Investments Ltd., which is controlled by Edwards and listed on the Singapore Stock Exchange.

Edward said CCI would develop business-to-business and business-to-consumer portals, an incubation unit to develop new e-businesses, telecommunications and technological initiatives, multi-media technology, education and the CyberCity as the high- tech center of the country.

"CyberCity will be designed as a virtual and physical cluster of Internet-related businesses, acting as a hub and locomotive bridging Indonesia and the world," Edward added.