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)