Telekom Malaysia to bid for Indonesia projects

Telekom Malaysia to bid for Indonesia projects

KUALA LUMPUR (AFP): National telecom firm Telekom Malaysia, on
the brink of losing its monopoly at home, has joined an
Indonesian-led consortium with American interest to bid for
projects in Indonesia, officials said.

"The consortium agreement will provide Telekom with the
opportunity to expand its services and participate in the growing
telecommunications industry in Indonesia," a Telekom official
said on Tuesday.

An agreement to set up the consortium was signed on June 29
among Indonesian firms PT Intidaya Sistelindomitra (PTIS), Abdul
Latief Corporation (ALC) and Kopthindo, American International
Group Inc. (AIG) and Telekom, Telekom officials said.

The consortium, known as PT Daya Mitra Malindo, is proposed to
be capitalized at US$10 million comprising 10 million shares of
US$1 each.

"The equity structure among the parties to the agreement have
been agreed upon in principle but the initial capital to be paid
up has not been determined at this juncture," Telekom said in a
statement to the Kuala Lumpur Stock Exchange.

PTIS, which currently provides voice-mail services, would lead
the consortium, the statement said.

Telekom recently won its first foreign contract to set up a
global telephone network in Sri Lanka, which the Malaysian firm
was to run on a joint venture with Colombo's Maharaja
Organization Ltd.

The government in May awarded local firm Binariang Sdn Bhd a
contract to install and operate Malaysia's first fully digital
cellular telephone and state-of-the-art fixed telephone networks,
effectively making the firm the second national telecom network
operator and Telekom's direct competitor.