Telkom, Bakrie CDMA merger a done deal by year end, government says

16 Sep 2010

The proposed tie-up between the CDMA operations of the country’s largest telecoms group PT Telekomunikasi Indonesia and smaller operator PT Bakrie Telecom could be completed by the end of this year, says Minister for State Enterprises Mustafa Abubakar. In June this year TeleGeography’s CommsUpdate reported that Telkom confirmed it was considering buying a stake in fellow operator Bakrie through a rights issue, as part of a plan to merge their respective CDMA operations. At the time Reuters quoted Telkom commissioner Tanri Abeng as saying that this option was most likely the only way to successfully complete a merger deal. Bakrie Telecom’s assets are thought to be worth up to USD1 billion, but any deal is obviously subject to a number of conditions that ‘must be agreed by both parties,’ Abeng said. The Indonesian government backs the merger ‘as long as it benefits’ the state company.

Indonesia, Bakrie Telecom (BTel), Telkom Indonesia