Telkomsel to Increase Capex by $200 Million in 2008 - CEO

JAKARTA -(Dow Jones)- Cellphone operator PT Telkomsel's chief executive said Tuesday the company plans to increase its capital expenditure to $1.7 billion next year, up from this year's $1.5 billion.

"The capex will be used to build more base transmission systems across Indonesia, increase capacity and develop new business," Kiskenda Suriahardja said.

Telkomsel, the nation's largest cellphone operator by subscribers, will mostly use internal cash, he said.

"We are also considering issuing bonds or seeking bank loans to help finance the capex," he added, but didn't elaborate further.

The expenditure will drive the company's plan to secure nine million new customers next year. By the end of this year, Telkomsel expects to have a total of 46 million subscribers.

Singapore's state-owned investment company Temasek Holdings owns a 56% stake in Singapore Telecommunications, which has a 35% stake in Telkomsel.

-By Edhi Pranasidhi; Dow Jones Newswires; 62 21 3983 1277; edhi.pranasidhi@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 27th November 2007