Telekomunikasi Indonesia seeks loan of $420-$630Mn for mobile & broadband expansion

www.WirelessFederation.com/news: Telekomunikasi Indonesia Tbk, Indonesia’s largest telco, intends to take up loan of $420-$630 million from banks to fund the expansion of its mobile phone and internet services.
According to President Director Rinaldi Firmansyah, the firm would use its internal cash to fund more than 60% of the capital expenditure, and borrow around 20-30% of the amount from banks.
“We will borrow from banks and the majority are state-owned banks such as BNI, BRI, Mandiri,” Firmansyah added, referring to PT Bank Negara Indonesia, PT Bank Rakyat Indonesia, and PT Bank Mandiri Tbk.
He further revealed that the borrowed money will be utilised in building broadband internet connection, expanding Telkom’s mobile phone network, and building a new satellite with Russia-based Reshetnev Information Satellite Systems.
With the coming of new operators to the country, it also becomes important for the operator to grow its expenses on promotions and reduce the tariffs,  leading to lower ARPU.