Jul 8, 2010

Esia & Flexi synergies put on hold

Strategic synergies between PT Bakrie Telecom Tbk (BTEL), CDMA-based operator of Esia, and PT Telekomunikasi Indonesia Tbk (Telkom), CDMA-based operator of Flexi, are put on hold due political reason.
State-Owned Minister Mustafa Abubakar said talks between both operators to accelerate synergies have been ceased, waiting for new structure of Telkom's board of director (BoD).
"We prefer that the synergies would be better discussed by new Telkom BoD," Mustafa said.
He said Telkom new management might have different strategies from current BoD. "This is why the government has asked talks on potential synergies put on hold."        
A source said the delay will also postpone cost efficiencies created through synergies between Bakrie Telecom and Telkom.   

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