Expansion Abroad: Telkom Establishes Subsidiary
Friday, 12 January, 2007 | 14:18 WIB

TEMPO Interactive, Jakarta: PT Telekomunikasi Indonesia Tbk. (Telkom) will establish a new subsidiary regarding business expansion abroad.

According to Telkom's Deputy Managing Director, Garuda Sugardo, a new subsidiary has been established and now it is waiting for legalization. “The new company will be PT Telkom International,” he said in Jakarta, yesterday (11/1).

Garuda said Telkom Internasional will be consultation service, education and providing code division multiple access (CDMA) telecommunication service. This new company's business will focus in Asian and African countries.

In terms of CDMA-based telecommunication service, he said Telkom Internasional will build the service network in other countries. The implementation, according to Garuda, can be by establishing a new company or acquiring companies in other countries.

Garuda explained the corporation targets that the new subsidiary can operate this year. “After legalization is completed, Telkom Internasional can soon operate,” he said.

The plan of expansion abroad was mentioned by Telkom Managing Director, Arwin Rasyid, before. According to Arwin, in order to increase Telkom's market capitalization to US$30 billion within the next five years, Telkom must expand. “One of the expansions is abroad,” he said.

In terms of the business expansion plan, this year the biggest telecommunication company in Indonesia has allocated between Rp15 trillion and Rp20 trillion for capital expenditure. Out of those funds, around Rp13.5 trillion will be allocated for cellular business development, Rp1.8 trillion for wireless fixed phone network and Rp450 billion for providing Internet Speedy service.

EKO NOPIANSYAH