Lippo Group to Invest $650m in Multimedia

Lippo Group is set to invest $650 million in its multimedia business PT First Media over a period of four years to develop its cable network, a First Media executive said on Thursday (30/8/07), according to Reuters.

More than half of the total investment, or $350 million, will be invested in expanding First Media's cable network while the rest will be used for marketing and research. First Media has 130,000 subscribers for its cable TV and 18,000 high-speed internet subscribers in the Greater Jakarta area, Surabaya and Bali.

First Media's CEO Roberto Feliciano said he expects this to increase as only 2 million out of 18 million internet users in Indonesia have access to high-speed internet. The company plans capital expenditure of $200 million this year to strengthen its 2,597-km cable network to achieve its target of reaching 1 million households in the Greater Jakarta area by early 2009.
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