Telkom to produce fiber optic cables

Telkom to produce fiber optic cables

JAKARTA (JP): State-owned PT Telkom is planning to set up
subsidiaries with private firms in the multimedia and optical
fiber sectors, Minister of Tourism, Post and Telecommunications
Joop Ave said yesterday.

The firm is currently preparing multimedia business and
planning to expand fiber optic networks to improve its service
and competitive edge, Joop said in a hearing with the House of
Representatives's Commission V on transportation, public housing,
tourism, post and telecommunications.

"Telkom has signed several memorandums of understanding with
private firms in the multimedia businesses," he said.

Joop said after the hearing that Telkom was also allowed to
establish other subsidiaries to manufacture optical fiber. "Since
fiber optic is part of the telecommunications industry, the
business will support Telkom's operations."

Telkom's president, Asman A. Nasution, said yesterday that
Telkom preferred domestic private firms as its partners.

Telkom currently has two subsidiaries, PT Indonusa Telemedia
and PT Multimedia Nusantara. Telkom has a 35 percent stake in
Indonusa and 31 percent ownership of Multimedia.

Telkom plans to install down optical fiber in replacing its
conventional cable networks. The project will include fiber in
the loop, fiber in the curb and fiber in home installations.

Satellite slot

Joop also announced yesterday that the International
Telecommunications Union (ITU) in Geneva had granted Indonesia 20
slots for the country's satellites in orbit.

"We still have to negotiate with ITU for the utilization of
the satellite slots."

In developing its telecommunications network, Indonesia also
relies on the satellite system to unify the archipelago, which is
located at 95 degrees and 141 degrees longitude.

Telkom, PT Satelindo, PT ACeS, PT Multi Media Asia, PT Pasifik
Satelit Nusantara and PT Media Citra Indostar are licensed to
operate satellites.

Indonesia currently operates five satellites, consisting of
two Palapa-B series, two Palapa C series and one Palapa Pacific.

Director General of Post and Telecommunications Djakaria
Purawidjaja said Indonesia would need at least 27 slots by 1999.

"As we are entering the multimedia business which uses
satellites, we have to secure, if possible, more than 30 slots.
But the space is too crowded with spacecraft," he said.

He said Indonesia would also develop the Nusantara 21, a US$15
billion project using satellites which would link the archipelago
through a high-tech information and telecommunications network.

Joop also said that approval had been given for state-owned PT
Pos Indonesia to acquire shares in privately-owned Bank Rajawali.
"The bank will then concentrate on small and micro financing
plans," he said.

Bank Rajawali president Robert Leman told The Jakarta Post
yesterday that the Ministry of Finance had approved in principle
the sale of 25 percent of the shares in the bank, a unit of the
Rajawali Group which is controlled by businessman Peter Sondakh.

He said Pos Indonesia would buy 10 percent of the shares, the
company's Pension Fund Foundation would purchase 10 percent and
Telkom's Pension Fund Foundation would take the remainder.

"But we are still negotiating several issues," he said. (icn)