Telekom Malaysia iffy about Kalimantan deal

Telekom Malaysia iffy about Kalimantan deal

KUALA LUMPUR (AFP): State-owned Telekom Malaysia is
reassessing a major telecommunications joint-venture with
Indonesia's PT Telekomunikasi Indonesia (Telkom) in Kalimantan, a
report said yesterday.

"If we need to, we are ready to abort the venture," Telekom's
Chief Executive Officer and Managing Director Mohamed Said
Mohamed Ali was quoted as saying by the New Straits Times daily.

PT Telkom had informed the Jakarta Stock Exchange on Monday
that the project, to provide phone lines in its northern region
of Kalimantan, was delayed because of differences with its
Malaysian partner.

The deal was to install and operate 237,000 phone lines in
Kalimantan by 1999. The operators would then be given operating
rights for these lines for 15 years.

PT Telkom told the Jakarta bourse Telekom may be replaced with
another foreign partner in its PT Daya Mitra Consortium if the
dispute over "internal problems" was not resolved.

Other members of the consortium are Indonesia's PT Intidaya
Sistelindomitra, the ALatieF Corporation and tea producers'
cooperative Kopthindo as well as Singapore-based American
International Group Inc.

Telekom officials said they were still studying the situation.

"We will review our position and act accordingly," Mohamed
Said said.

Telekom shares were 30 sen lower at 20.30 ringgit (US$8.12) on
the local bourse at noon yesterday.