Indonesian budget mobile phone operator PT Bakrie Telecom Tbk is seeking $150 million in loans to finance its capital expenditure and to refinance debts, a local newspaper reported on December 01.
Bakrie Telecom's chief financial officer, Jastiro Abi, was quoted by Bisnis Indonesia newspaper as saying the company would spend $100 million to expand its network next year.
"Our shareholders have given their approval for the company's plan to seek a loan with the maximum amount of $150 million," Abi told the newspaper. "We hope the appointment of the investment bank can be done quickly."
Bakrie Telecom is one of about 10 players in Indonesia's mobile phone sector, where the number of mobile phone users expanded by around 50 percent last year and is expected to continue to grow and reach 100 million users by 2010.
It has slightly over one million subscribers and expects to end the year with 1.5 million, on the back of an aggressive marketing campaign aimed at lower-income users.