SKT mulls expansion in Indonesia

SK Telecom Co., South Korea’s largest mobile-phone operator, may buy a stake in Indonesia’s PT Bakrie Telecom to expand in Asia’s third-most populous nation. Bakrie’s shares surged to a record high.
A purchase is among various options being considered, Cindy Kang, a spokeswoman at Seoul-based SK Telecom, said in response to a report by Investor Daily Indonesia. Bakrie Telecom President Anindya Bakrie said today the company is in preliminary talks with some operators and vendors.
Expansion in Indonesia would follow China for SK Telecom, which is turning to mobile phone markets less saturated than Korea for growth. For Bakrie, which is majority owned by the family of Indonesia’s welfare minister, a tie-up may help it get funds to invest and compete against PT Telekomunikasi Indonesia and PT Hutchison CP Telecommunication in the country, where about six out of 10 people still don’t have mobile phones. ``Bakrie Telecom needs to spend a lot on capital expenditure,’’ said Bimo Haryo Pamungkas, an analyst at PT Samuel Sekuritas Indonesia in Jakarta.
Bakrie expects its number of subscribers to more than double to 3.6 million by the end of this year, from 1.5 million at end of last year. The company plans to double spending on equipment to 2 trillion rupiah ($221 million) during 2007, he said.
SK Telecom offers wireless services based on CDMA technology in Korea.