Telkom compensation for projects likely

CIREBON, West Java (JP): PT Telkom president Asman Akhir Nasution said here yesterday his company would consider compensating the price escalation resulting from the currency crisis to contractors of ongoing projects.

"We will likely continue such projects and will cover the escalation caused by the currency crisis," he said after officiating the start of construction of a telecommunications project in West Java.

The rupiah's value has slumped by about 80 percent against the U.S. dollar from Rp 2,400 since last July when the crisis began.

The economic crisis had forced Telkom to place spending priorities on more pressing programs and projects which had already started, he said.

Nasution said the second priority was on ongoing projects with large investment. He said halting projects with large investment in equipment and technology would cause significant losses.

The third priority would likely be projects with quick cash flow, he said.

"Quick yielding projects such as new features will continue," he said.

Nasution said the crisis had not caused losses to his company.

"We only lost Rp 146.1 billion worth of potential revenue last year, but it wasn't a loss, we still profited," he said.

Asked whether PT Telkom would allocate its telecommunications projects to company members in the Indonesian Telecommunications Association (Apnatel), Nasution said Telkom would neither discriminate for or against them.

"These companies must not be crybabies. They must compete professionally. Only those which are professional will get the projects," he said.

He was referring to Apnatel's suggestion that PT Telkom give a fair share of telecommunications projects to more companies instead of just one. (43/das)