Telkom looks for USD756m loan to fund expansion

26 Nov 2008

According to reports in local newspaper The Jakarta Post, Indonesia’s dominant telecoms carrier PT Telekomunikasi Indonesia (Telkom) is looking for loans totalling IDR9 trillion (USD756 million) from local banking institutions to help fund its expansion plans in 2009 and stave off the growing threat from industry rivals. It is understood Telkom may approach the likes of PT Bank Mandiri, PT Bank Negara Indonesia (BNI) and PT Bank Rakyat Indonesia (BRI) to cover as much as 40% percent of its entire IDR22.5 trillion CAPEX plan. The group’s mobile arm Telkomsel is investing around IDR13.5 trillion to shore up its business after a difficult trading period that saw it post its lowest quarterly profit for two years. The cellco’s net income dipped 18% year-on-year in the third quarter to 30 September, amid stiffening competition, an economic downturn and lower tariffs.

Indonesia, Telkom Indonesia