Foreign Shares in Telecommunications Dilemmatic
Thursday, 26 April, 2007 | 16:22 WIB

Tempo Interactive, Jakarta: The Indonesian Telecommunications Regulation Agency (BRTI) has said it considers that foreign share ownership in the national telecommunications industry is very dilemmatic.

Heru Sutadi, a BRTI member, said that the entry of foreign investment was necessary because the need of investment in this industry was extremely high.

On the other hand, he said, foreign shares ownership is hampered by matters rlated to nationalism.

This is because telecommunications is one of the industries that control the interests of many people.

“Ideally, foreign ownership should only be 35 percent,” said Heru in Jakarta yesterday (25/4).

According to Sofyan Djalil, Information and Communication Minister, foreign share ownership can reach 95 percent.

This provision is based on Government Regulation No. 20/1994 on Foreign Ownership in Enterprises Set Up In Line With Foreign Investment.

Sofyan said Maxis Communication Berhad from Malaysia has purchased 44 percent of Penta Ltd.’s shares in Natrindo Telepon Seluler worth US$123.9 million.

As for the Lippo business group, it now only has five percent of the shares.

Earlier, Maxis bought 51 percent of Lippo’s shares in Natrindo, worth US$100 million.

Therefore, Maxis is now the owner of Natrindo’s majority shares with 95 percent share ownership.

Natrindo has already been awarded pocketed the second generation of cellular telephone services (2G) and the third (3G) since four years ago.

However, the growth of Natrindo’s market, which operates in Surabaya, East Java, is stagnant with total telephone connections only around 12,000.

Eko Nopiansyah and M Nur Rochmi
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