Sisindosat looking for strategic partners
Sisindosat looking for strategic partners
JAKARTA (JP): PT Sisindosat Lintasbuana, a sister company of state-owned PT Indosat, is looking for strategic partners to enhance the performance of its value-added telecommunications services.
"Strategic alliances are inevitable in this competitive telecommunications and information technology market," Sisindosat's president, A.M. Suseto, said yesterday.
After finding one or more qualified partners, Sisindosat would then plan to float its shares, he announced during an seminar on Ungerman Bass technology networking products at the Aryaduta Hotel.
Indonesian telecommunications firms usually offer between 20 percent and 30 percent of their shares through direct placement to selected bidders, mainly a combination of foreign and domestic enterprises.
"There are several parties from Europe, the United States and other countries which have proposed partnerships with Sisindosat," Suseto disclosed, adding that a special team had been established to prepare the strategic alliances.
He said that providing multimedia services was also in Sisindosat's development plan.
Sisindosat was established in April 1990, by Indosat and several other domestic companies to supply telecommunications and information technology services.
Indosat acquired a 60 percent interest in Sisindosat last year. It bought the stake for US$2.3 million from Yakindosat, its employee welfare foundation. Sisindosat is now 60 percent owned by Indosat, 1 percent by Yakindosat and 39 percent by Indosat's employee cooperative, Kopindosat.
Sisindosat's clients include the country's central bank, Bank Indonesia, the Ministry of Finance, the state-owned oil company Pertamina, Sempati Air and the Ministry of Defense and Security.
Subsidiaries
According to Suseto, his company, which holds current assets of Rp 48 billion ($20.5 million), has four subsidiaries or affiliates -- PT Sistelindo, PT EDI Indonesia, PT Graha Lintas Properti and the U.S.-based Global Link.
Sisindosat has a majority stake of 35 percent in Sistelindo, which provides Internet services in cooperation with IBM; a 49 percent share of EDI, which offers electronic data interchanges at the Tanjung Priok port in North Jakarta; a 35 percent stake in Graha Lintas, which will develop a 29-story building equipped with computer and communication systems; and a 20 percent share of Global Link, an integrated telecommunications service provider.
In 1995, Sisindosat earned $10.2 million in revenue and $260,000 in profit. (icn)