Indosat Speeds Up Cellular Business
Friday, 01 December, 2006 | 15:42 WIB

TEMPO Interactive, Jakarta: PT Indonesian Satellite (Indosat) is struggling to develop its cellular business. Around 75 to 80 percent of next year's capital expenditure which totals US$1 billion will be used for investment in this business.

According to Indosat's Managing Director Kaizad B. Harjee, the trend of positive growth in the cellular field encourages the company to increase investment. “In addition, there is hope of demand growth in cellular service in 2007,” he told reporters in Jakarta yesterday (30/11).

Indosat's Marketing Director Wahyu Wijayadi said next year Indosat will net around five to six million new customers. Until September 30, 2006, Indosat's customer totaled 14.2 million.

The composition is 94 percent pre-paid customers and six percent post-paid. The numbers rose 12.2 percent compared with 2005. These have been less 1.3 million customers who did not register regarding the registration program for pre-paid customers.

“Until the end of this year, we targeted around 16 million new customers. The customer composition for next year is estimated to be the same,” said Wahyu on the same occasion.

In the meantime, until the third quarter of 2006, Indosat's profit went down to Rp412 billion compared to the same period last year. The reason is the burden in the first quarter of this year was higher. This was for the repair of the network in Java. “Next year we target more. It is estimated that the profit growth next year will be above five percent but I can't say the exact amount,” said Indosat's Finance Director Wong Heang Tuc.

Kurniasih Budi