Thursday, March 25, 2010

First Media turned positive

PT First Media (KBLV) Tbk, controlled by Lippo Group, posted net profit of Rp32.8 billion last year against net loss of Rp101.7 billion in 2008 on stronger sales revenue and improved operating margins.
First Media, operator of cable TV Kabelvision, reported net sales revenue of Rp722.46 billion last year, surged 36.2% from 2008 while its cost of services increased slightly by 12.7% to Rp293 billion. As a result, First Media posted gross profit of Rp429.36 billion, soared 60% from 2008. But the company reported substantial increase of 31.4% in operating expenses to Rp364.7 billion. First Media then booked operating profit of Rp64.7 billion against loss of Rp8.7 billion in 2008.
First Media reported strong growth of revenue from subscription fees for broadband Internet to Rp331.6 billion, surged 73% from 2008, while subscription fees for cable TV reached Rp255 billion last year, grew by 15.8% from 2008. Data communications revenue also jumped 37.5% last year.

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Monday, March 15, 2010

Innotech to launch MOKO.mobi in Indonesia

MOKO.mobi Limited has signed an agreement with PT Innotech Wireless Solutions, a leading mobile specialist service provider to all the major Indonesian mobile carriers.
Innotech has been appointed as the exclusive agent for MOKO.mobi in Indonesia and will be responsible for coordinating the launch of the service on the carrier's portals with zero rated-data, premium MMS, and WAP billing.
Indonesia is a large mobile market with over 180 million mobile customers.
MOKO.mobi is a global platform that enables people to chat and share anywhere. People from around the world use MOKO.mobi on their mobile phone or PC to meet new people, chat in real-time, upload unlimited photos and video, share links, and sample & recommend music from artists.

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Saturday, March 13, 2010

Four companies win Village Internet project

ICT Ministry has finally appointed four companies to build Internet infrastructure for 5,748 villages in 4,700 sub-regencies in Indonesia worth US$40 million.
The four companies are PT Telekomunikasi Indonesia (TLKM) Tbk, PT Aplikasinusa Lintasarta (subsidiary of Indosat), PT Jastrindo Dinamika, and PT Sarana Insan Muda Selaras.
Telkom wins three packages: package 1 (Aceh and North Sumatra), package 10 (North Sulawesi, Gorontalo, and Central Sulawesi), and package 11 (West Sulawesi, South Sulawesi, and Southeast Sulawesi).
Aplikasinusa, meanwhile, wins three packages: package 7 (Bali, West Nusa Tenggara, East Nusa Tenggara), package 8 (Kalimantan), and package 9 (Maluku, Papua).
Jastrindo wins package 2 (West Sumatra, Jambi, Bengkulu, and Riau) and package 3 (South Sumatra, Lampung, Bangka Belitung, and Riau Island). Sarana Muda, meanwhile, wins Package 4 (West Java and Banten) and Package 5 (Central Java and Yogyakarta).

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Thursday, March 11, 2010

Axiata divests up to 20% XL Axiata

Axiata, the sole ultimate shareholder of Indocel, proposes to undertake an offering of up to 20.0% of the issued and paid-up share capital of telecommunication provider PT XL Axiata (EXCL) to eligible institutional/sophisticated investors via a bookbuilding exercise. At the current price, Axiata could bag US$656 million from the divestment.
The Proposed Offering involves an international private placement by Axiata Group of up to 1,701,600,000 XL Shares (Offer Shares), representing 20.0% of the issued and paid-up share capital of XL, to eligible institutional/sophisticated investors via a bookbuilding exercise, to be satisfied entirely through cash. Today EXCL gained 1.43% to close at Rp3550.
At that price, the value of 1.7 billion XL shares being offered is about Rp6.035 trillion or about US$656 million (at Rp9200/USD).

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Saturday, February 13, 2010

Multimedia Content regulation

Public, including content providers, bloggers, facebookers, twitters, have until February 19 to review the draft of Multimedia Content Regulation. While government argues such regulation is needed to protect public from hassles caused by abuse of electronic information, documents, and transactions, some worried the regulation could be a setback to freedom of expression.
Public may review the Draft of ICT Minister Regulation about Multimedia Content and provide feedbacks to gatot_b@postel.go.id. One week might not enough to review the draft, but content providers have no choice than to review quickly the draft.
Pornographic contents (Article 3) and gambling (Article 4) are among the targets. But coverage of contents to be regulated is way beyond them.
Article 5 forbids distribution, transmission and or give access to contents which contained information about actions that may degrade physical ability, intellectual capacity, etc of someone. (Needs further clarity on this, because criticizing public officers could fall into the definition of this article)
Article 6 forbids contents which contain:
(1) Hoax which may cause losses for consumers in electronic transaction:
(2) Information which triggers hatreds among individuals, group of religion, tribes, etc;
(3) Extortion
Article 7 forbids contents which contain:
(1) Information on privacy (authentic deeds, members of the family, medical records, financial records, assets, income, bank accounts).
(2) Intellectual Property Rights
Internet Providers are given the rights for blocking multimedia content upon the decision of Multimedia Content Team or the provider itself.
The Multimedia Content Team will be consisted of government officers (50%) and public (50%). Such composition may be too government-heavy. May be 30% government and 70% civil society would be fair. Why not an independent body instead?
Article 32 point 2: Multimedia Content Team is chaired by Director General (at the ICT ministry). Why should a director general at ICT Ministry?
Article 24 may be too excessive because five members of the Multimedia Content will be all government officers who will examine one or series of contents based on reports from public, State apparatus, and or Internet providers.
The Team will be assisted by a secretariat to be instituted further by Telematic Application Director General. The Team shall be established within one year since the regulation applied.
Well, this team could be a new (censorship) superbody in the country.

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Monday, February 08, 2010

Telkomsel customer base grew 25%

The largest cellular provider PT Telkomsel, controlled by PT Telkom and SingTel, reported 25% growth in customer base to 81.6 million last year. SingTel owns 35% shares in Telkomsel.
According to SingTel, Telkomsel controls 49% market share in Indonesian mobile market. In the third quarter of financial year 2009/2010, Telkomsel reported profit before tax of S$238 million, increased 43% from the same quarter of 2008/2009 (Oct-December 2008).
SingTel also controls 32.01% effective interest in Bharti Airtel, the largest GSM operator in India, with 118.9 million customers, surged 39% from 2008. SingTel also owns 47.34% stake in Globe Telecom in the Philippines which has 23.2 million customers, declined from 24.7 million in 2008. In Thailand, SingTel owns 21.35% shares in Advanced Info Service (AIS), which reported total customer base of 28.77 million last December, inched up from 27.47 million in Dec 2008.

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Saturday, January 30, 2010

Traffic information services

Traffic or Macet is the word people mention every time they're asked to describe major cities like Jakarta, Bandung, or Surabaya. Radio station like Elshinta is famous for its traffic information, thanks to listeners' active participation in providing information through SMS and regular update from "official" sources like Jakarta Metropolitan police or Bogor police when it comes to Puncak area. 
Technology, especially ICT, has triggered some people to develop new traffic information services, live, web-cam-based through digital platforms like iPhone and Blackberry. There are some web portals developed to provide close to real-time traffic situation like Lewatmana.com, Macetlagi.com or Infolalulintas.com. The first two seems increasingly popular, at least based on traffic from web users identified by Alexa.com. Lewatmana.com tops the list, currently ranked 2132 in Indonesia according to Alexa.com, while Macetlagi.com is ranked 4409. Infolalulintas.com is far behind these two at 27994. 

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Thursday, January 28, 2010

Metrodata sells EMC

PT Metrodata Electronics Tbk has informed BT Frontline Pte Ltd about its plan to exercise the put option on all its shareholding in PT E Metrodata Com (EMC). According to the joint venture agreement, BT Frontline Pte Ltd is obliged to purchase Metrodata's shares in EMC, a JV with BT Frontline and Sun Microsystem Inc.
PT EMC was established in January 3rd, 2007. It is not clear how much Metrodata will get from the put option. According to Metrodata's financial report, the company owns 51% shares in EMC with total asset of Rp55.1 billion. Metrodata is also the owner of 31% shares in PT Sun Microsystems Indonesia with total asset of Rp252 billion.
Metrodata reported net sales revenue of Rp2.32 trillion in Jan-Sep 2009, increased slightly from Rp2.314 trillion in the same period of 2008. The company's net profit, meanwhile, dropped substantially from Rp23.6 billion to Rp7.8 billion in the period.
Metrodata is currently owned by Ockham Cay Holding Ltd (BVI), Hiskak Secakusuma, and public (78.71%).

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Saturday, January 23, 2010

Nine companies compete for Internet project

Government has shortlisted nine companies in a competitive bidding to build and supply Internet Access under universal service obligation (USO) program for sub-regencies around the archipelago. They're selected from 19 companies pre-qualified in the previous bidding round.
There were 25 companies entered the process, but six companies were declared not qualified. They are PT Cyber Network Indonesia, PT Inet Global Indo, PT Nettocyber Indonesia, PT Sejahtera Globalindo, PT Total Indo Kharisma, and PT Core Mediatech. 
Out of 19 companies pre-qualified, only nine companies submitted bid documents for the next round. They are PT Telekomunikasi Indonesia for 11 packages, PT Indonesia Comnets Plus for 7 packages, PT Aplikanusa Lintas Arta for 3 packages, PT Pos Indonesia for 11 packages, PT Netwave Multimedia for 11 packages, PT Jastrindo Dinamika for six packages, PT Sarana Insanmuda Selaras for 3 packages, and PT Jasnita Telekomindo for one package.
Others pulled out from the process. They are PT Berca Hardayaperkasa, PT Indosat Mega Media, PT Multidata Rancana Prima, PT Indointernet, PT Rahajasa Media Internet, PT Telekomunikasi Selular, PT Mora Telematika Indonesia, PT Indopratama Teleglobal, PT Indonesia Mesh Networks, and PT Jasa Jejaring Wasantara.
Interestingly, the stiffest competition will be for Package 9 which covers four provinces in Maluku and Papua. Seven bidders are competing for this package. East Java and Bali, West Nusa Tenggara, and East Nusa Tenggara packages also attracted six bidders. 
Winners will be announced next week or so.  

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Thursday, January 21, 2010

ATM frauds escalated

Forget about the gigantic fraud at Century by its owners and management which consumed our energy in the past few months. It is time to take care your own wallet from ATM skimmers, capers, etc. State bank BNI reported that at least 19 customers have claimed a total loss of Rp200 million from two ATM machines in Denpasar, Bali alone.
Yesterday, the central bank, Bank Indonesia, admitted they have received reports about ATM frauds from six major banks: Mandiri, BCA, BNI, BRI, Permata, and BII. One of the banks experienced 236 ATM frauds which cost Rp4.1 billion. Central bank suspected international crime syndicate behind the frauds.
BCA had earlier reported indications of PIN theft done through peeping by unauthorized parties while customers were doing transactions at BTA ATMs in Kuta, Bali few weeks ago. This week, at least 10 BCA customers reported similar frauds in Kuta, Bali. Police suspected Russian crime network behind the ATM frauds.
Later on Thursday, BCA's vice president director Jahja Setiaatmadja, told Detik.com that about 200 depositors hit by ATM frauds with total loss of Rp4-5 billion. BCA has repaid most of them, "because there are evidences of skimming."
One of the victims saw Rp75 million disappeared from his account at BCA with one Rp5 million transfer, 6 for Rp10 million each, and five for Rp2 million each. The next day, he lost another Rp70 million.
Indonesian police claimed they have arrested at least six members of a crime organization led by a Russian living in Toronto, Canada.
Police also seized 70 SIM Card, tens of saving account book, and ATM cards used in the phone banking fraud. Police predicted 3,000 people have become victims of banking frauds with total funds embezzled of around Rp300 billion.
Some of the criminals equipped with guns and took physical money from ATM, so the bank is the victim, not the depositors. Last June, Depok police in West Java arrested 11 ATM thieves, eight of them are military guys. They embezzled Rp111 million from BNI's ATM in Limo, Depok. It is easier to take down guys like this. But money transfer and cyber transfers are the most dangerous ones.
You're lucky if the bank recover your losses. But there are so many people out there have been forced to swallow bitter pill.

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Monday, January 18, 2010

More Chinese cell phones certified

Indonesian ICT ministry has certified more Chinese made cell phones for Indonesian market in the past three weeks. The latest is Huawei G7007, Titan Q777/GSM, and various types of Nexian, Beyond, Dexxo, Lexus, and DTC. With the certification, these products are allowed to be imported and distributed in Indonesian market.
Certification is regulated by Article 32 point 1 and 2 of Telecommunication Law No. 36/1999. ICT Ministry said the fact that more Chinese made cell phones have been certified has nothing to do with the implementation of Asean-China Free Trade Agreement (ACFTA) implemented January 1st, 2010. Research in Motion (RIM) had hard time for the certification of some of Blackberry models, but settled in August 2009.
Other products certified by ICT Ministry are D-One cell phone, Jabra bluetooth headset, Nokia, Cisco IP Phone 7942 and 7962 (both produced in China), eTouch cell phone (China), etc.
Well, China is currently the largest supplier of cell phones worldwide with market share over 50%. The country produced about 600 million handsets last year, increased 7% from 2008. Production of gray market handsets surged 142% to 145 million units, according to All View Consulting.
China is also the largest handsets market with 168 million units of sales last year and are expected to top 185 million units this year.

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Saturday, January 02, 2010

Amdocs allowed in Telkomsel tender

Amdocs, a US-based company, is finally allowed to participate in a competitive bidding for billing system at the largest cellular player PT Telkomsel, a subsidiary of Telkom, after the ICT minister Tifatul Sembiring got clearance from US Ambassador about the status of Amdocs. Tifatul initially suspected Amdocs as an Israeli company.
"I have been provided clarification from US Embassy," Tifatul, a politician from Prosperous Justice Party (PKS) said. PKS is known for its anti-Israel stance on international political affairs.
Telkomsel is the largest cellular player in Indonesia with over 80 million users. This company is co-owned by Telkom (65%) and SingTel (35%).

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Telkom continues early retirement program

PT Telekomunikasi Indonesia, Tbk. (TELKOM) announced that 1,252 employees will be retiring as a result of the 2009 early retirement programme. The program is mainly directed to employees aged 48 years old and above, mostly are administrative staff and access network technicians.
Telkom allocated Rp910 billion for the 2009 program, but argued annual saving of Rp300 billion in personnel cost from the program in the longer run. At the moment, Telkom has 23154 employees. About 12568 employees have retired under the early retirement program since 2002. Telkom is the largest company listed on Indonesia Stock Exchange (IDX) with market capitalization of US$20 billion.
Telkom booked net profit of Rp9.3 trillion in Jan-Sep 2009, increased almost 5% from the same period in 2008 (Rp8.9 trillion).

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Wednesday, December 02, 2009

XL buys back US$64M Notes

Third largest telco player PT Excelcomindo Pratama (EXCL) Tbk has purchased back US$64.6 million principal amount of the 7.125% Guaranteed Notes due 2013. Following the buyback, the aggregate principal amount of Notes outstanding is approximately US$59.43 million.
EXCL executed the buyback yesterday on SGX. EXCL issued US$250 million guaranteed notes in January 18, 2006. The company purchased back the bond with principal amount of US$122.3 million in June 2008, followed with US$3.6 million in April 2009. EXCL decided to buyback the Notes due to high withholding tax the company should pay. 
EXCL is controlled by Axiata Group Bhd through Indocel Holding Sdn Bhd (83.8%), Emirates Telecommunications Corporation (Etisalat) International Indonesia Ltd, a wholly owned subsidiary of Etisalat (16%), and public investors (0.2%).

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Friday, August 07, 2009

Excelcomindo operating profit drops 41%

Third largest cellular provider PT Excelcomindo Pratama (EXCL) Tbk reported net profit of Rp706 billion in H1 2009, higher by 11% from the same period last year, but mainly due to gain in forex translation and leasing.
EXCL reported net service revenue of Rp6.2 trillion, increased 7% from the same period last year. But its operating expenses surged 21% to Rp5.46 trillion, mainly to significant increase in infrastructure costs.
As a result, EXCL booked operating profit of Rp749 billion, slashed 41% from the same period last year. Due to its huge debts, interest expenses also surged 65% to Rp713 billion in H1 2009. Lucky that the company reported Rp425 billion gain in forex translation plus gain of Rp463 billion from leasing transaction.

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Friday, July 31, 2009

Mobile-8 loss surged 170%

PT Mobile-8 Telecom (FREN) reported net loss of Rp269.6 billion in the first half 2009, surged 170% from the same period last year on poor operating margin.
Mobile-8 reported operating revenues of Rp189 billion, dropped 58% from the same period last year on lower revenue from telecommunication and interconnection services. 
Meanwhile, operating expenses increased 17% to Rp551 billion. As a result, Mobile-8 reported operating loss of Rp361.5 billion against Rp11.9 billion in H1 2008.
The company was lucky because of gain on foreign exchange translation and gain on change in fair value of derivative financial instrument of a combined Rp224 billion, more than enough to cover the surge in interest expenses and financial charges of Rp228 billion. Else, the company would have posted bigger net loss.
Mobile-8 lost most its market value in the last two years. The peak price of Mobile-8 was in May 2007 at Rp330 to represent a market capitalization of Rp6.68 trillion (US$720 million). But since then, the stock crashed to as low as Rp50 or a market cap of Rp1.01 trillion. Today the stock was closed at Rp53.
The company has total liabilities of Rp4.25 trillion, almost 10 times its equity at Rp457 billion. Worse, its current liabilities were Rp1.4 trillion, while current asset was only Rp661 billion. Technically bankrupt. Cash in hands? Well, only Rp8.8 billion. If we look at its cash flow statement for H1 2009, cash receipts from customers were not enough to pay suppliers and employees. 

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Tuesday, July 14, 2009

Govt softens on BlackBerry

The Government of Indonesia has softened its stance on Research in Motion (RIM) where ICT ministry allows import of BlackBerry even though only for types that already certified for distribution in Indonesia. 
Executives of RIM, accompanied by Canadian Ambassador in Jakarta, met director general for post and telecommunication Basuki Yusuf Iskandar on Tuesday to reaffirm RIM's commitment to open service center in Indonesia. 
RIM got "mild result" from the meeting because government resumed import of BlackBerry for types already certified, but rejected to certify new BlackBerry models.
RIM promised to government officers that it will open the service center by August 26, 2009. RIM will start site construction, material delivery, and training by July 31, to be followed with trial run in August 17, and go live by August 21.
ICT ministry requires RIM to develop service center in Indonesia with similar quality the one in Singapore. "We don't want them to keep sending BlackBerrys to Singapore for service," Gatot Dewa Broto, head of information center at the ministry said.

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Saturday, July 11, 2009

ICON+ wins USO

PT Indonesia Comnet Plus (ICON+), a subsidiary of state utility firm PT Perusahaan Listrik Negara (PLN), wins two packages of universal service obligation (USO) for telecommunication in several provinces.
According to ICT Ministry, ICON+ wins package 4 (North Sulawesi, Gorontalo, Central Sulawesi, South Sulawesi, South East Sulawesi, Maluku, and North Maluku) with negotiated price of Rp274 billion. ICON+ competitor is PT Indonusa System Integrator.
The company also wins package 5 (Papua and West Papua provinces) with negotiated price of Rp455 billion. ICON+ is the only bidder for this package.
ICT Ministry had earlier named PT Telkomsel, a subsidiary of Telkom, as the winner of five other USO packages with combined offer of Rp1.64 trillion or about US$160 million.

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Sunday, July 05, 2009

Govt may freeze all Blackberry certifications

Indonesian government may freeze all certifications already given to all Blackberry products if Research in Motion fails to deliver its commitment to establish service center in Indonesia by July 16. Certification holders will not be allowed to import any kind of Blackberry product. 
Government made the decision on July 1st. This is the second tough decision on Research In Motion (RIM). Earlier, government rejected to approve certification application on new Blackberry products. Import of Blackberry will only be resumed after RIM opens its service center in Indonesia. 
How about the existing Blackberry users? Well, government said they could still use the product. But users are advised to buy certified products, not those in the black market.
RIM executives met government officers in June 15 and pledged its commitment to study the plan to establish service center or representative office in Indonesia.
What about Apple's iPhone?

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Friday, July 03, 2009

BMTR asks for US$25 M compensation from bondholders

PT Global Mediacom (BMTR) Tbk has filed lawsuit against DB Trustees (representative of bondholders), Mobile-8 Telecom Finance Company BV, and PT Mobile-8 Telecom (FREN) Tbk. BMTR asks for material loss compensation of US$25 million from these companies, where two of them were actually BMTR's subsidiaries.  
BMTR told IDX this morning that filed the lawsuit to counter a lawsuit filed by bondholders against FREN over the defaulted US$100 million bonds and BMTR as the former controlling shareholder of FREN. Wow!
Why BMTR did that? The company argues that it is not a party in the indenture agreement signed August 15, 2007, and that it never gave both oral and written commitment to maintain its ownership in Mobile-8 above 51% (which triggered the default of bonds).
BMTR is controlled by Harry Tanoesoedibjo family. BMTR was the controlling owner of FREN, but then divested most of its shares to Jerash Investment, Dubai. BMTR, while keeping about 19% shares in FREN, denied of maintaining the control of the ailing telecommunication company.

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