Telkom privatization programs to be evaluated soon
Telkom privatization programs to be evaluated soon
JAKARTA (JP): The government is to evaluate later this month privatization programs of telecommunications in the country's five regions handled by five joint ventures holding 15-year joint operation contracts.
"The evaluation will be based on a number of parameters including interpretations of legal aspects, reporting systems and technology transfer," Minister of Tourism, Post and Telecommunications Joop Ave said after chairing a technical meeting with the five private firms yesterday.
He said the government would also consider allowing the firms to install more fixed-telephone lines than the original number assigned by the government.
Telkom handed over last January management of its telecommunications networks in Sumatra, Kalimantan, West and Central Java and the country's eastern region covering Sulawesi, Maluku, Irian Jaya and Nusa Tenggara, following the signing of a joint operation contract in October 1995.
The projects were part of the government's program to install five million telephone lines within the current Sixth Five-Year Development Plan period, which ends in March 1999.
Telkom would continue the development, operation and management of the networks in the greater Jakarta area and East Java.
The five private joint ventures include PT Pramindo Ikat Nusantara, responsible for installation of 500,000 new telephone lines in Sumatra; PT Aria West International, responsible for 500,000 lines in West Java and PT Mitra Global Telekomunikasi Indonesia, responsible for 400,000 lines in Central Java. The other two companies are PT Daya Mitra, which would install 237,000 lines in Kalimantan and PT Bukaka Singtel, which would install 403,000 lines in the eastern region.
Each of the joint ventures is responsible for operating and managing telephone lines in its contract area for 15 years, until 2010. In addition, each has been given three years, until 1999, to install the telephone lines specified in their contracts.
As the government increased its target to install 6.7 million fixed-telephone lines and a network capacity of 1.3 million mobile telephones by March 1999, the government would also review the private firms' responsibilities.
Joop said yesterday the government had in the meantime received reports from the five firms that the joint operation projects had so far run well. (icn)