Telkom, four KSO partners agree to ratify terms of contracts
Telkom, four KSO partners agree to ratify terms of contracts
BANDUNG (JP): State-owned telecommunications firm PT Telkom
reached an agreement with four of its five partners to ratify
their joint operating (KSO) schemes.
Telkom vice president of communications D. Amarudien said here
on Thursday "the minutes of the meeting" with the four partners
had been agreed on and signed by all parties.
The four partners are PT Bukaka Singtel International with
concession areas in Sulawesi and other areas of eastern
Indonesia, PT Mitra Global Telekomunikasi Indonesia with
concession areas in Central Java, PT Cable and Wireless Mitratel
in Kalimantan and PT Pramindo Ikat Nusantara in Sumatra.
Amarudien said negotiations with PT Aria West International,
which has concession areas in West Java, were ongoing and had not
yet produced tangible results.
Amarudien said Telkom and the four partners basically agreed
to restore the terms of the contracts to the master agreement.
"In principle, the KSO agreements will be restored to the
master contract after Dec. 31, 1999, based on the memorandum of
understanding signed on June 5 last year," he said.
Telkom and its five partners signed a master agreement in 1996
to allow the partners to install telephone lines in five regions
in Indonesia. The agreement ends in 2010.
After the economic crisis hit the country in 1997, the two
camps signed a two-year memorandum of understanding in which
Telkom agreed to cut its share of revenue from the projects to 10
percent from 30 percent.
The memorandum of understanding will end this year. Telkom
earlier said it wanted its share of revenue to return to 30
percent after the memorandum of understanding lapsed.
Amarudien said Telkom and its five partners, which began
negotiations on Nov. 2 to ratify the contracts, would again meet
to fine-tune the contracts.
"We want to redefine some clauses and add new ones to improve
communications between Telkom and its partners," Amarudien said.
He promised to announce the substance of the ratified
contracts once Telkom had reached a final agreement with all
five of its partners. (43/06)