Telkom, Pramindo seal buyout deal

Telkom, Pramindo seal buyout deal

The Jakarta Post, Jakarta

State telecommunications company PT Telkom said on Friday that
it has finally completed a planned asset buyout with its joint
operating partner, PT Pramindo Ikat.

"Both parties have agreed on a buyout deal," Mursyid Amal,
Telkom's financial director, told The Jakarta Post.

He declined to reveal its value, however, as "both parties
agreed it will be announced only after we sign a memorandum of
understanding on Feb. 14."

The announcement of this deal ended a protracted negotiation
between Pramindo Ikat and Telkom that had lasted for nearly ten
months.

Pramindo Ikat is one of five Telkom's KSO (joint operation
scheme) partners that were granted contracts in 1995 with which
to construct and operate telephone lines in various provinces.

Pramindo holds a 15-year contract to develop and manage
telephone lines in Sumatra.

The introduction of a new telecommunications law that ends
Telkom monopoly has led the company to a prolonged dispute with
its KSO partners.

Pramindo is 40 percent owned by Astratel Nusantara, a unit of
Astra International; 35 percent by France Cables et Radio; 13
percent by PT Indonesian Satellite Corp. (ISAT); eight percent by
Marubeni, and two percent by Nichimen Corp.