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)