Tower firm seeks foreign equity

Tower firm seeks foreign equity

BANDUNG (JP): PT Menara Jakarta, the private consortium
planning to build the country's tallest tower in Kemayoran,
Central Jakarta, for US$560 million, has invited foreign firms to
join its project.

Menara Jakarta is owned by the state-owned telecommunications
firm PT Telkom, PT Indosat, Yayasan TVRI foundation and PT
Indocitra Grahabawana, a private firm controlled by Sudwikatmono,
Prayogo Pangestu and Henry Pribadi.

Telkom vice president Moh. Gempita said here yesterday that
foreign partners were invited to buy up to a 75 percent equity
stake, worth $126 million, in Menara which planned to develop the
558-meter-high tower.

"Menara Jakarta will be reincorporated as a foreign-investment
firm. The remaining 15 percent of shares worth $42 million will
be held by Menara Jakarta," he said.

He said foreign partners would also be required to raise $393
million in foreign loans.

The foreign partners' stake would be reduced gradually to 25
percent, he said.

The multi-million-dollar tower, expected to become a tourist
attraction, is scheduled to be the third highest in the world
after CN Tower (555 meters) in Toronto, Canada, and Oskantino
(530 meters) in Moscow.

The tower, part of the Kemayoran development plan, is set to
be about four times taller than the 132-meter national monument,
Monas. According to the plans, there will be a telecommunications
center with broadcasting and television facilities at the top of
the tower, which will also contain restaurants, hotels and
offices.

The project sparked controversy when it was announced last
year. But the government eventually gave it the go-ahead.

The tower is expected to take three years to build. (21/icn)