Telkom to earn more revenues

Telkom to earn more revenues

JAKARTA (JP): The government has revised upwards the revenues
of the state-owned domestic telecommunications operator PT Telkom
from the winners of telecommunications projects in the coming 15
years.

Minister of Tourism, Post and Telecommunications Joop Ave told
reporters, after meeting with President Soeharto yesterday, that
Telkom will likely receive total revenues of Rp 15.25 trillion
(US$6.8 billion), 2.5 percent higher than its preliminary
estimation, from the project winners in the coming 15 years.

Joop said he has reported to the President about the winners
of five join operation contracts announced by his office last
month.

He said the winners, which will develop telecommunications
projects in Kalimantan, Central Java, Sumatra and West Java, will
install a total of two million telephone lines within the current
Sixth Five-Year Development Plan (Repelita VI) period.

"Telkom previously estimated total revenues of Rp 14.88
trillion from the contractors. However, after a series of
negotiations, we expect to get total revenues of Rp 15.25
trillion," Joop said, adding that this will support Telkom's
progress and performance within the next 15 years.

He said that the joint operations for the contracts will
commence next year, while the signing of the contracts is
scheduled for next month.

The five projects include telecommunications facilities in
Sumatra, which will be established and managed by PT Pramindo
Ikat with technology support from Cable et Radio of France; In
West Java by PT Tiga-A, with support from US West of the United
States; In Central Java by MTGI, with support from NTT of Japan
and Telstra of Australia; In Kalimantan by Daya Mitra Malindo,
with support from Telecom Malaysia; And the eastern part of the
country by Bukaka Singtel, with support from Singapore Telecom.
(icn)