Telkom, Indosat seek investors for new project
Telkom, Indosat seek investors for new project
JAKARTA (JP): The two state-owned telecommunications operators, PT Telkom and Indosat, are now selecting foreign investors to join in their new joint digital cellular telecommunications project.
Indosat's president, Tjahjono Soerjodibroto, said after the company's shareholders' meeting on Tuesday evening that a team from Indosat and Telkom are still studying the proposals of three foreign telecommunication firms which applied to join in the joint venture, PT Telkomsel.
Indosat and Telkom agreed last year to set up Telkomsel to operate Global System for Mobile Communications (GSM) cellular telecommunications nationally with its base in Batam, Riau. Telkomsel is now 51 percent owned by Telkom and 49 percent by Indosat.
Indosat's general manager for investor relations, Budi Prasetyo, told The Jakarta Post yesterday that the team is now looking for firms with the right expertise to join Telkomsel, with considerations not only on their offer of funds but also on their technology and other aspects, because it is expected to become a world class operator.
"We need cooperation with other firms already applying high skilled technology," Tjahjono said.
The government expects to install about 600,000 cellular telephone lines by the year 2000 to serve both domestic and foreign firms.
PT Satelindo, a GSM operator partly owned by Indosat and Telkom, has recently allowed the participation of a German telecommunications company by acquiring 25 percent of its shares.
Later this year the French telecommunications giant, Alcatel, will develop the Intelligent Network system for Indosat.
Alcatel won the US$4 million contract through its affiliate PT Sisindosat, which was selected by Indosat in an open tender participated by a number of domestic firms.
The Alcatel Intelligent Network system will offer advanced features including advanced free phone, a system which will charge calls to the called subscribers and credit card calls which will enable people to use any telephone and charge the call to a particular credit card account. (icn)