PT Telkom, the dominant telecommunications company in Indonesia has announced that it has signed an MoU to buy PT Pramindo Ikat Nusantara Pramindo.
Pramindo is Telkom's operating partner in the domestic fixed line JV it has in Sumatra. The JV is one of five so-called KSOs which sprang up in Indonesia in 1995 as Telkom sought ways to expand its reach and coverage without incurring large capex costs. The build-operate-transfer structure of the deals meant that the capex costs would not appear on Telkom's balance sheet while the revenues it would receive would show up.
Five such KSO's were established and they all went sour in the 1997-1998 financial crisis. With...
