Indonesian Political, Business & Finance News

Telkom to prepare multimedia services

Telkom to prepare multimedia services

JAKARTA (JP): Relying on its digital and fiber-optic networks,
state-owned domestic telecommunications operator PT Telkom plans
to develop multimedia services in cooperation with private firms.

Telkom's president, Setyanto P. Santosa, said yesterday that
his company had agreed with PT Telekomindo Primabhakti and PT
Rajawali Citra Televisi (RCTI) to develop the services.

"Telkom has well-prepared infrastructure potential for voice,
visual and image telecommunications. Through partnership, we will
enter multimedia services," Setyanto said, adding that multimedia
would be a promising business in the future.

Telekomindo is a private cellular telecommunications operator.
Telekomindo, 10-percent owned by Telkom, is controlled by the
Rajawali Group, which has ties with both businessman Peter
Sondakh and the Bimantara Group, which owns the RCTI television
station.

Setyanto said yesterday that the agreement for the development
of multimedia services was just a preliminary arrangement.

In a related development, Telekomindo's vice president, Peter
Djatmiko, said yesterday that his company will launch global
system for mobile (GSM) cellular telephone services in Jakarta
and Surabaya, East Java, in June next year.

"We plan some 100,000 lines in Jakarta and 50,000 lines in
Surabaya," he said.

In August, Telekomindo was granted a permit to become
Indonesia's third GSM operator. The two other GSM operators are
PT Satelindo, which is owned by Bimantara, DeTeMobil of Germany,
Telkom and PT Indosat; and PT Telkomsel, which is owned by Telkom
and Indosat.

Peter said that Telekomindo has set up a new company called PT
Excelcomindo to run the GSM business in cooperation with Nynex of
the United States, Mitsui of Japan, the Asian Infrastructure Fund
and several local partners, including Santana Telekomindo, the
Armed Force's Kartika Eka Paksi Foundation and the Tridaya
Foundation.

He said that the share ownership is still being discussed
among the parties.

"We plan to operate in the capitals of each of the country's
27 provinces within the next five years. We expect to list some
100,000 subscribers by 1997," he said.

There are currently about 200,000 cellular telephone
subscribers in Indonesia. (icn)

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