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.