Two firms get rights to operate int'l calls

JAKARTA (JP): The government, under a decree, is handing over the exclusive rights to international telecommunications services in the country until the year 2005 to PT Indosat and PT Satelit Palapa Indonesia (Satelindo).

The state-owned international telecommunications operator PT Indosat said in its latest newsletter that the decree on the "duopoly" of international telecommunications services companies was signed by the Minister of Tourism, Post and Telecommunications on March 1.

According to decree No. 6/102/1995, the government may license another company after a 10-year period.

The are currently three major telecommunications regulations in the country, including the Telecommunications Law No. 3/1989, Government Decree No. 8/1989 and the Ministry of Tourism, Post and Telecommunications Decree No. 39/1993. Under the regulations, only state-owned companies are allowed to operate basic telecommunications services.

The ministerial decree stipulates that the tariff of international telecommunications services is determined by the minister, which applies to both Indosat and Satelindo so they can compete in terms of services rather than tariffs.

Indosat is the country's first state-owned company listed on the New York Stock Exchange. Satelindo meanwhile, is a private firm running three major operations in satellites, digital cellular telephones and international calls.

Satelindo is 45 percent owned by PT Bima Graha, a subsidiary of Bimantara Group, 25 percent by DeTe Mobil of Germany, 22.5 percent by PT Telkom, the state-owned provider of domestic telecommunications services, and 7.5 percent by Indosat. (icn)