Telkom secures business

Telkom secures business

JAKARTA (JP): The state-owned domestic telecommunications
operator PT Telekomunikasi Indonesia (Telkom) has secured its
business of long distance calls for the next 10 years, Minister
of Tourism, Post and Telecommunications Joop Ave said.

"I have set a decree which extends rights of exclusivity for
Telkom to operate the long distance phone call business for 10
years," he said in a hearing with members of the House of
Representatives yesterday.

He said that long distance calls are the major business which
makes up the majority of Telkom's revenues.

"Unlike the international phone call business, which is now
operated by state-owned PT Indosat and a private operator, the
government licenses only Telkom to operate long distance calls."

Under a decree, the government has extended 10-year exclusive
rights to Indosat and the private-owned firm PT Satelit Palapa
Indonesia (Satelindo) to deal with international calls until
2005. According to the decree the government may license another
company after the 10-year period.

Joop also said yesterday that the 10-year long-distance call
monopoly is strategic for Telkom, which is preparing itself to
float its shares on foreign stock markets.

Telkom, which plans to list its shares on the New York and the
London stock exchanges later this year, also plans to trade
its shares on other stock exchanges, including Tokyo and
Amsterdam, without listing. (icn)