Telkom plans to sell noncore subsidiaries

JAKARTA (JP): State-owned telecommunications company PT Telkom plans to divest a number of subsidiaries and shareholdings in several noncore businesses, a senior executive said on Wednesday.

Telkom director of operations and marketing Komarudin Sastrakoesoemah said the move was part of the company's plan to concentrate on its core business, which is providing phone, mobile, video and Internet services.

"But we have not disclosed the names (of the subsidiaries and noncore businesses) because we fear the companies' value will go down once we announce it," he said, adding that Telkom would let go of about nine of its 16 subsidiaries and shareholdings.

As part of the plan, he said, the company would also raise its interest in the subsidiaries active in its core business.

Telkom has mapped out which subsidiaries and shareholdings will be sold, those which the company will increase its interest in and which will be maintained in their current state, he said.

However, the sales will only occur when the prices of the companies are favorable, he said, adding that Telkom is not in a hurry to sell.

"The sales are part of the company's plan, but we are not desperate to do so," Komarudin said.

Antara quoted sources as saying Telkom would divest its 25 percent share in PT Citra Sari Makmur, its 22 percent share in PT Pasifik Satelit Nusantara, 9 percent in PT Telekomindo Primabhakti, 8 percent in PT Batam Bintan Telekomunikasi and 35 percent in PT Komselindo.

Telkom will also divest its shares in PT Telesera, PT Mobisel and PT Menara Jakarta, the sources said.

Earlier, state-owned telecommunications company PT Indosat said it would divest some 10 to 15 companies which were not in line with its core business.

Indosat also said the sales would wait until the prices of the companies were favorable, but that it expected the sales to occur by the end of the year or sometime next year.(tnt)