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)