Telkomsel's unpaid bills may total Rp 90 billion this year

JAKARTA (JP): The amount owed to mobile telephone operator PT Telkomsel by its customers may reach Rp 90 billion (about US$82 million) by the end of this year, the company's president Mulia Tambunan said yesterday.

Mulia said unsettled accounts would amount to about 10 percent of the company's estimated revenue of about Rp 900 billion for the year.

He said the amount would be much higher than that in the previous year due to the worsening purchasing power of its subscribers.

Unsettled bills for the January to June period totaled about Rp 43.75 billion, or about 12 percent of the total revenue of Rp 513 billion in the first semester, Mulia told a press briefing.

Mulia (right in the above picture) is accompanied by commercial director Hasnul Suhaimi (center) and operation director Laurens Bulters during the press briefing.

According to data from state-owned telecommunication provider PT Telkom, Telkomsel's subscribers increased to 380,743 as of June 30 this year compared to 300,672 over the same period last year.

In comparison, Satelindo's subscribers declined to 221,505 as of June 30 this year from 315,160 in the same period last year, Mobisel to 16,379 from 29,343 last year and Komselindo to 51,500 subscribers from 108,75 in the same period last year.

Mulia, who was appointed the company's new president last month, said the company also owed US$150 million to its foreign suppliers.

Most of its suppliers, which provide telecommunication equipment to the firm, are from European countries and the United States.

"Our debt to our vendors is also a problem for us but talks are underway to restructure them," Mulia said, pointing out that restructuring its debt was important in preventing the company from suffering a financial setback.

He said Telkomsel, which is 42.7 percent owned by PT Telkom, 35 percent by PT Indosat, 5 percent by Setiawan Djodi's Setdco Group and the remaining 17.3 percent by PT Telecom Netherlands, would remain committed to paying its debts to its foreign suppliers.

The company has proposed rolling over its debts to 2000.

"We expect to roll over some of our debts to the year 2000," he said, declining to mention whether the proposal has been agreed to. (aly)