Telkom to launch Palapa-B 5 in 1999

Telkom to launch Palapa-B 5 in 1999

BANDUNG, West Java (JP): The state-owned domestic
telecommunications operator PT Telekomunikasi Indonesia (Telkom)
will launch the Palapa-B 5 satellite in 1999, the company's
president Setyanto P. Santosa announced.

"It takes about three years to manufacture a satellite, so
1999 or 2000 will be the soonest schedule for Telkom to launch
the Palapa-B 5 satellite after the study is completed," Setyanto
said here yesterday.

Minister of Tourism, Post and Telecommunications Joop Ave
announced recently that the government would allow Telkom to
operate its own satellites again after handing over its previous
satellite business to PT Satelindo in 1992.

Satelindo, which is 40 percent owned by PT Bima Graha, a
subsidiary of the widely-diversified Bimantara Group, 25 percent
by DeTeMobil of Germany, 7.5 percent by PT Indosat and 22.5
percent by Telkom, will manage satellites of the Palapa-C
generation. The company, which operates international as well as
digital cellular telecommunications services, expects to launch
the Palapa-C 1 early next year.

Setyanto said that Telkom has yet to prepare any financial
arrangements for the Palapa-B 5 and Palapa-B 6 projects.

"We may get the funds from our own equity or loans from the
Exim Bank of the United States or other sources. The study for
the project is still underway," he said.

Setyanto refused to mention the possible value of the project.

"The government considers the business of satellites in the
region as very promising and Indonesia should not lose the
chance," he said.

He said there are several companies waiting for confirmation
about leasing Palapa-C 1s transponders. If not, the companies
will go to Thailand, Malaysia, Hong Kong or another country which
operates its own satellites.

Telkom, which began managing satellites of the Palapa-A
generation in the 1970s, currently operates three satellites, the
Palapa-B 2P, Palapa-B 2R and Palapa-B 4. (pet/icn)