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.