Telkom looks to acquire smaller telcom firms

Ika Krismantari , The Jakarta Post , Jakarta | Wed, 12/02/2009 9:28 PM

The country’s largest telcom operator PT Telekomunikasi Indonesia (Telkom) plans to acquire several smaller local telcom firms including Bakrie Telecom next year, to expand its code division multiple access (CDMA) services.

Telkom finance director Sudiro Asno said Wednesday his firm was targeting companies outside its main competitors, PT Indosat and PT Excelcomindo Pratama, respectively the country’s second and third largest telco operator.

Telkom, he said, “Is only targeting ‘small guys’.” Sudiro did not elaborate but quickly added that “It hasn’t been decided yet. We are still in an early stage.”

Sudiro said that should the deal with Bakrie Telecom be reached, then Telkom may issue bonds next year to help finance the acquisition.

However, when The Jakarta Post mentioned the matter to Bakrie Telecom, the management said that they knew nothing about it.

“We have not had any talks whatsoever either with Telkom or within our internal management,” Bakrie Telecom director for development Rachmat Junaidi said over the phone.

He continued that the company was now focusing on developing the company’s business and did not have any plan to sell its shares to other parties.