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)