STT reaffirms investment commitments in Indosat

Rendi A. Witular, The Jakarta Post/Jakarta

Singapore Technologies Telemedia Pte Ltd. (STT) reiterated on Friday its long-term commitment in Indonesia, vowing to continue to develop its networks here via PT Indosat, the nation's second-largest telecommunications firm, which it partly owns.

STT president and chief executive officer Lee Theng Kiat said the company's investment in Indosat was long-term, with the company showing strong growth so far in developing its telecommunications business in Indonesia.

"STT is committed to being a long-term investor in Indonesia and we continue to give full support to Indosat's management in providing a superb network for the people," said Kiat after a meeting with Vice President Jusuf Kalla on Friday.

When asked whether such a commitment would be translated into plans to invest in other telecommunications companies here, Kiat said no such plans had been made but STT was always on the look out for opportunities.

Publicly listed Indosat is 41.94 percent owned by STT, 15 percent by the government and the remainder by the public. At the end of 2002, the Indonesian government sold the 41.94 percent stake in Indosat to the company.

While reports have it the government will relinquish its remaining shares in Indosat soon amid the government's dire need for additional revenue, exacerbated by the whopping fuel subsidy, Kalla brushed aside the suggestion.

The matter was not even on the agenda of Friday's meeting, he added.

"The visit by the STT executives is more of a courtesy call. There has been no talk of selling the government's remaining shares in Indosat," he said.