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Indosat, XL Axiata to build joint consultancy venture
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A technician from telecommunications operator PT Indosat carries out maintenance work at a base transceiver station (BTS) in Jakarta. (JP/Ricky Yudhistira)
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span style="letter-spacing: 0.1px; background-color: rgb(255, 255, 255);">Indosat Tbk and XL Axiata Tbk, two of Indonesia's mobile-phone operators, are forging a joint-venture company aimed at providing consultancy services.
The plan was disclosed to the public by Indosat on Tuesday, as required by the Indonesia Stock Exchange (IDX).
Indosat president director Alexander Rusli said the joint venture firm comprised authorized capital of Rp 10 billion (US$750,470) and issued capital of Rp 2.5 billion.
"The joint venture is expected to provide consultancy services on network collaboration in the future. Both parties involved in the transaction are in the process of exploring potential collaboration," he said in a statement.
Indosat, he further said, will take 50 percent of ownership in the joint venture, with total shares amounting to Rp 1.25 billion. The company will prepare its internal cash for the transaction.
Meanwhile, XL Axiata Dian Siswarini stated that the company indeed will take another 50 percent of ownership or 1,251 units of share. "Each share is valued Rp 1 million," she said.
Indosat, controlled by Oreedoo of Qatar, has been competing fiercely against XL Axiata, controlled by Axiata of Malaysia, to win position as the second-largest mobile phone operator in Indonesia; state-owned Telkomsel leads at the top. (ags)
