Report No. 7U2-1ND Indonesia Telecommunications Sector Study (In Two Volumes) Volume 'I: The Annexes June 25, 1990 Asia Country Department V FOR OFFICIAL USE ONLY Document of t* '4 \ ''**-' '\ ,. ?~~ ~ ~ ~ ~~~~ . ' ^ aa , ' a ; a -C _~~~~~~~~~~~~~~~~~~~~~~3 \ -authorim , a-a,- b¢e, ,lclosed withoutworldBanka> ' Ca ?~~~~~~~~~~~~~~~~~~~~~~~~~~~ C 1 .1 ., ,a ° '; .. i V . \ \ t 6 ! ,, ' y C3 ' _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~a .n : - ,° { s o \~~~- .3._-'' ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~a-? - 3 -a o -,c .. This L,en has a restiicted diibution and may be used by reciplents, .., .~ Q?nly in thet performane of their ol.,ciaa dut$eW Its contents mnay not teiise., a- : be dsicloed without World Bank.authoizaoriz . (3 aO - 2]0 t>. ................................................fA_. oAr Urfiff W ~~~~~~~~uf Intal PuX _ _te -18- ANNEX -1 Attacbment 1 Page 1 TELEONNWMCATIONS SECTOR STUDY PERUMTEL: Collection of Base Data on Organization and Manazement 1. Genegal. PERUMTEL is the major domestic telecommunications service provider in Indonesia with a monopoly in the provision of "basic" domestic telecommunications services. It is a "PERUM," i.e., a state-owned civil service enterprise providing public utilities for profit, and it employs about 40,000 persons. At the end of 1988 it had about 800,000 main telephone lines, for an employee-to-line ratio of approximately 50 per 1,000 lines. 2. Organizational Structure. PERUMTEL, together with PT IndoSat and PT Inti, is under the direction of the Ministry of Tourism, Posts and Telecom- munications (MTPT) (see Figure B-5). The present internal organization of PERUMTEL is shown in Figure B-1. Three different groups comprising 22 directors report directly to the President Director. (a) Under the President Director there are five directorates at headquarters: Operations, Personnel and Administration, Finance, and Supply and Development. (b) In addition to the directorates, there are: a Corporate Planning Center, an Education and Training Center, a Research and Development Center, and an Inspectorate for Internal Audit. The centers are each supervised and represented at board meetings by one of the directors. The centers also report in parallel directly to the President Director. (c) In addition, PERUNTEL has 12 regions called Witels. A 13th "region" is responsible for the domestic satellite communications system, Palapa. Each region formally reports directly to the President Director. 3. Management and Senior-level Recruitment. With Indonesian nomenclature and legislation, PERUMTEL's "Board of Directors" is the management group of the company. The board members are the five directors heading the respective directorates and the President Director. The Minister appoints the President Director for a period of five years. Prior to the current appointment, the post was held by the same person for 15 years. Assignments and corresponding terminations of other senior posts are recommended by the Minister and, in principle, are controlled by the Government after consultation wiih the President Director. Seniority, political factors and personal reiations play an important role in the selection process. The present President Director and the Board of Directors were appointed after the elections and government reorganization in mid-1988. The President Director, Mr. C. Sudarijanto, was previously with INDOSAT. The - 19 - e a.- S s hv @I C X bEd ~~~~~~~~~~~i DS Ill CoLra - 20 - ANNEX - Attachmen$ 1 Page 2 present Directors for Operations and for Personnel and Supply were recruited from the military sector. The Director of Finance came from the Finance Ministry, and the Director of Development is the former head of Witel IV, the largest regional unit (Jakarta). 4. Senior Management Oualifications and Training. Information on qualifications, experience and training of the present Board of Directors was not provided during the World Bank mission in December 1988. Following the mission, full curricula vitae for the directors were published in the PERUMTEL personnel newsletter. Some Directors have limited experience in their areas of responsibility. However, with the new Board of Directors PERUNTEL has created the platform for restructuring the organization. To be successful, a substantial and reinforced management development program must include director levels as appropriate. 5. Job Descriptions. Job descriptions exist for all personnel at all levels. However, most were issued around 1984-85 in printed and bound volumes. Existing job descriptions are not used as a managem.ent tool and are not regularly updated to reflect current job content, changing technology and organizational objectives. 6. Delegation of Powers. The management culture that has developed within PERUXTEL is centralized. All decisions of significance, both at headquarters and in the regions, require approval at the director level. Preparatory work at lower levels for decision making and implementation of assigned tasks is usually regarded as assistance to the immediate superior, but there is no actual responsibility at the lower level. 7. taf-f Unions. No unions (in the traditional sense) exist at PERUMTEL. However, two other entities have significant influence ..n the organization. The Civil Servants Community (KORPI) oversees PERUITEL's compliance with the values and goals of the Indonesiar Stcte (PANCA:ILA). The Civil Servants Spouse Association (WANAWAKI) exercises social contrl and may in some instances be influential in assignments and transfers of per.sonnel within the organization. - 21 - Attachment 2 Page 1 INDONRSIA TELEC RICATI UD SECTOR SX IEDOSAT. Copaarative Notes on Organization and Mana&ement 1. INDOSAT is the international telecommunications carrier in Indonesia providing cable and satellite service. It is a state-owned enterprise with OPT" status, similar to a private, profit-making company. It employs approximately 1,500 persons (end-1988). INDOSAT is the Indonesian signatory to Intelsat. 2. The organization of INDOSAT is shown in Figure B-6. The directorate has four members: the President Director, the Director of Operations, the Director of Planning and Development, and the Director of Finance and Administration. Operations is the largest department with about 700 employees. 3. INDOSAT has implemented a modern planning, remuneration and management system. The following summary was provided by the President Director in November 1988. The annual planning cycle begins in June. Managers throughout the organization are invited to propose projects and activities for the next fiscal (calendar) year. Proposals are processed in a budgeting and programming cycle before presentation to the President Director in August. Selected proposals are circulated internally for comment and review and, by early September, there is a fairly clear view of the coming year's activities. During the second week in September, proposals are finalized and sent to the board of commissioners for their review before submission to the ministry by September 30. The final plan for the coming year's activities is then presented for approval at the shareholders' meeting not later than the end of December. After the overall plan is approved by the shareholders, the President Director meets with all employees to explain what is to be achieved. All units are required to finalize detailed project implementation plans during the first weeks of January. The detailed plans form the basis for monthly progress reviews. 4. INDOSAT has also established a system for individual performance assessment based on individual performance objectives defined yearly. Evaluation is made on a three-grade scale: good, more than expected, much more than expected. 5. Starting -n 1968, international services in Indonesia were operated as a joint venture between the Government and ITT. When INDOSAT was created in 1980, it took over about 140 employees and recruited another 650 (mostly operators) from PERUNTEL. From the outset, INDOSAT's remuneration system differed from that of PERUMTEL. The system at PERUNTEL is, in Indonesian usage, "wet" (i.e., the take-home pay consists of a base salary plus numerous additional allowances, bonuses, etc.) but INDOSAT decided on a - 22- o3 |~~~~~~L c~~ . l ;':. , - 23 - Attachmen Page 2 'dry' system with a preset, well-defined, all-inclusive take-home pay. The "wet" system is difficult to manage, administratively cumbersome and unsuitable as a management tool. The possible advantage is that the base salaries nominally comply well with the "publlc service culture." However, the base salary at PERUMTEL often represents only about 30% of an employee's actual total take-home pay. In order to Introduce the "dry" system at INDOSAT, guarantees had to be provided that employees' salawies would not be reduced, or else the organization would have faced an internal revolution. In the first years this system may have been more expensive because salaries had to be rounded off generously, but the system is preferred by INDOSAT and its employees. 6. INDOSAT gives all managers a training program including government administration, general management, supervision and office automation. 7. With the tools available and the culture that has been created, INDOSAT, as an organization, is able to measure its progress against well- defined targets which provide early warning when something is about to go wrong. It also has the basic inseruments to reward people for good performance and make people accountable for their actions. PERUNTEL has not adopted this kind of management system. In our discussions with PERUNTEL officials, it seemed they are considering the INDOSAT model and intend eventually to adopt something similar. - 24 - ANNEX A-2 Page 1 TELCOMMUICATION SECTOR SEIM fluman Resources Management: UNDP/IMU Consultant's Recommendations 1. PERUMTEL's present human resource management (HRMI) configuration is inadequate to meet the major new challenges posed by the planned technical development, expansion and upgrading of Indonesia's telecommunications system. In connection with the sectoral study missicn to Indonesia a UNDP/ITU consultant outlined a number of human resource management issues currently affecting PERUMTEL. This annex presents the findings of the UNDP/ITU consultant. Human Resources Planning 2. For evaluation of overall telecommunication staff performance, the usual indicator is the ratio of total staff per 1,000 main lines. In Indonesia, the ratio is about 50, a high figure compared to similar systems in other couniries. Among the reasons citect for this are the high proportion of unskilled staff, Indonesia's archipelagic geography, and the Government's desire to expand employment opportunities for the growing labor force. In assessinag PERUNTEL's staffing ratio, it should also be noted that project preparation and implementation are normally carried out by contractors and consultants. 3. During Repelita V (1989-94), network capacity is to be increased by 120% from 800,000 lines to at least 1,700,000. PERUNTEL could achieve a reduction of the staff/main line ratio of 8-10% p.a. during the project period through increasing productivity and limiting new employment to fewer persons with higher skills. While the total number of staff would increase to meet the requirements in new network capacity, the ratio of staff per 1,000 lines would decrease to fewer than 30 at the end of the period and could decrease to 20 during Repelita VI. 4. Human resources planning, recruitment and training should give special emphasis to PERU4TEL's skills-mix needs. The organization will require more educated employees vho have potential for development due to: (a) rapid introduction of modern technologies, (b) greater emphasis on marketing and customer service, (c) increasing needs for for managerial expertise, (d) decentralization, and (e) the supervision of large outside plant projects undertaken by private contractors. PERUMTEL will need fewer employees, but more of those employees should be engineers and technicians, and also managers qualified in administration, operations, finance, marketing and other commercial activities. - 25 - ANNEX B-2 Page 2 5. A thorough evaluation of standards and parameters for staff performance, including productivity data and performance indicators, should be undertaken. The present human resources planning system and procedures should be revised to eliminate present overstaffing and improve the low ratio of engineers and qualified technicians to administrative and operational personnel. Career Development and Promotion 6. The present system of defining an employee's career, including promotion policy, does not easily lend itself to systematic development of employee career paths and skills development and the identification of training needs. In order to provide job satisfaction and motivation, increase efficiency and productivity, and improve recruitment of qualified staff, it is important to implement a staff career development system. This should include a revised system of job requirements and classification, definition of posts and skill levels. All promotion should be based on suitability for positions determined on the basis of a performance appraisal which measures past performance against goals and targets and, thereby, assess potential for placement and promotion, and training and development needs. Salary Structure 7. Present pay scales are acceptable compared with other government agencies, but the salary system and its application are strict and inflexitle. It is proposed t;hat the salary structure be revised and made more adaptable. The structure should include a reward system based on job performance. The application of the salary structure should also admit adjustments of salaries to market situations in order to attract and retain the high-caliber staff for which PERUNTEL faces competition. The salary structure should be arranged so that each position or group of identical positions is compensated at a certain grade or level based on a job evaluation system. The grade structure should reflect the relation between different pisitions within the same career stream as well as the relation between different career streams, and it should also take into account supply and demand in the labor market. For placement of an individual on the salary scale (level and step), rules should relate both to job qualificaLions and education required as well as to an employee's performance. Recruitment, 8. PERUMTEL does not normally encounter difficulties in recruiting staff. Favorable pay scales and other benefits, particularly the generous pension, coupled with high unemployment in Indonesia, have produced an extremely low turnover rate in PERUNTEL. Nevertheless, there is a shortage of qualified candidates for the higher technical and finance categories requiring undergraduate and graduate degrees, and recruitment for the higher levels should be intensified. In order to compete with other corporations, PERUNTEL should direct recruitment -26 - ANNEX B-2 Page 3 efforts toward specific telecommunications and telecommunications-related faculties of universities and academies. Activities should include not only steps to attract suitable candidates but also measures to encourage educational institutions to irclude telecommunications-related fields in their curricula. Recruituent and the responsibility for recruitment and selection should be delegated and decentralized to the regions to the extenu possible. Personnel InforAtion System 9. Much information already exists regarding personnel statistics in general and information needed for training purposes. Nost is computerized, but it is neither systematically arranged nor properly analyzed. It is recommended that the management information system within the personnel department be reorganized and restructured to enable management to make timely and correct personnel decisions. Personnel Rules and Regulations 10. A personnel policy for PERUNTEL staff appropriate to PERUMTEL's status--one of the largest enterprises in Indonesia--and functions should be developed, and personnel rules and regulations should be revised and brought in conformity with PERUMTEL's evolving role and structure. Allowances and fringe benefits should be made fair and reasonable. Training 11. In light of proposed changes in PERUMTEL's staff configuration, training offered to staff will have to be improved. Increased attention to management training, technology, productivity and quality of service will require significant changes in the way training is provided in the following areas: (a) Training Organization. A clearer distinction between corporate training management and management of respective training institutions is recommended. The corporate training managenent's responsibities should include (i) policy and strategy, (ii) planning and overall administration, (iii) standards, (iv) course design and standards, (v) course evaluation, and (vi) control and follow-up. (b) Training Facilities. PUSDIKIATTEL should be responsible for management training snd higher-level and special training, but basic training up to assistant engineer level should be transferred to the regional training units (RTUs) (70-80% of all training). As the RTUs will play a significant role in PERUMTEL's training, their capacity in all respects has to be strengthened. PERUMTEL's training facilities at PUSDIKIATTEL are satisfactory, but within the regions the RTU facilities are - 27 - ANNEX B-2 Pape 4 deficient in most respects. Upgrading of the RTU capabilities and facilities is therefore needed. (c) w;ining Institution Staff. It will be necessary to recruit qualified teachers and instructors who have both the technical competence and the training skills necessary to teach others. To make the trainer's job more attractive, a system for job rotation, career development, support, recognition and accountability should be established. r -28- c INNESIA TELECOMMNICATIONS SECTOR STUDY PROPOSED CORPORATE EPANNING PROCESS: INTERACTIONS BETWEEN IEMUMTEL AND GOVERNMENT DEPARTMENTS AND AGENCIES 1. This document was prepared by a consultant to assist in the development of an interactive government-to-PERUNTEL corporate planning process. The following pages will present successively: (a) the benefits for each participant; (b) the responsibilities and areas of interest for each participant; and (c) a flow chart for the corporate planning process and related activities. This document resulted from discussions with many indiv'duals within PERUMTEL and in various government departments and agencies: their cooperation was essential in preparing this report. II. THE BENEFITS OF A FOREMLIZED CORPOr.TE PLANNING PROCESS 2. Relations between PERUMTEL and government departments and agencies may be improved if they are formalized and documented for the PERUMTEL Repelita and corporate planning process; furthermore this corporate planning process needs to be strongly linked with the annual budgeting process and the preparation of the "Blue Book" for foreign-financed projects. 3. The advantages and benefits for each participant are as follows: Par,ticioant B;e,fi, (a) Department of Tourism, Posts - Will ensure that government priorities and Telecommunications; are incorporated in the corporate plan Department of Finance and in the budget. - Will be equivalent to a "contract" between PERUNTEL management and the shareholders. - Will allow for monitoring and measurement of performance. (b) PERUMTEL - - Will stabilize and formalize relations with the Government. -29 -C Page 2 - Will reduce risks of unnAcessary Interactions with Government. - Will specify required assistance from Government for achieving objectives (ex: local and foreign financing, local approvals). (c) Other goverruental depart- - Will keep them informed long enough monts in advance of PERUSL plans and projects. - Will ensure that their own views and objectives are understood by PERIMTEL. III. THE RESPONSIBILITIES OF OUTSIDE PARTICIPANTS 4. Telecommunications plays a key role in the development of Indonesia. The Government, the business community md all individuals want PERUMTEL to fulfill its mandate and to prosper. The strategic importance of PERUMTEL, its large size, its required investments and its need for foreign technology necessitate many interactions with government departments and agencies. The key outside participants in the PERUNTEL corporate planning process are listed below, along with their present responsibilities regarding PERUMIEL. Participan Responsibility (a) Department of Tourism, - Regulation of PERUMTEL Posts and Telecommunications (XPT - Supervision as shareholder. Under a PT status, the shareholders would also specify the dividend pay-out. - Approval of PERUMTEL Repelita. - Approval of annual budget. - Approval/review of corporate plan. (b) -Department of Finance - Approval of foreign loans. - Approval of annual budget, at shareholders meeting. - Approval of PERUNTEL Repelita. . Approval/review of corporate plan. (c) BAPPENAS - Preparation of government Repelita: umbrella and focus for NTPT and PERUNTEL. -30 AN--C Page 3 - Approval of PERUMTEL Repelita. - Approval of foreign loans. - Approval of export credit facilities. - Informed of PERUMTEL corporate plan. (d) Coordinating Minister for - Approval of all foreign contracts. Industry, Trade, and Finance (ERUIN) - Allocation and approval of export credit facilities. - Approval of big tenders (Rp 3 billion plus) - Coordination of macroeconomic aspects. - Informed of PERUNTEL corporate plan. (e) Cabinet Secretariat - Approval of foreign tecbnical assistance. (f) Bank of Indonesia - Implementati,n of foreign loans. (g) Technology and Development - Informed of and approves new (BPPT) technology and development initiatives. (h) Department of Foreign Affairs - Approval of extension for expired loans. - Formal signature for bilateral foreign loans. - Formal relations for technical asssistance. IV. COORDIpATION WITH THE GOVERNMENT REPELITAS 5. The corporate planning process should consist of both plan development and performance evaluation activities. The process complements the annual budgeting exercise and the preparation of the 'Blue Book" on foreign financed projects; these three elements follow the framework set by the Government in Repelita V. Some of the basic information and many of the participants are the same. The corporate plan covers many years and specifies the priorities and guidelines; the annual budget specifies and quantifies the action plan for the year. 6. The corporate plan uses a five-year horizon; it will be a rolling plan updated yearly. However, major annual revisions are unnecessary unless drastic changes occur in the environment or the operations of PERUMIEL. 7. A monitoring process would rejuire PERUHTEL to submit periodic reports on its performance that would be reviewed and assessed by KMPT staff -31- AM C Page 4 and reported to the minister. While important matters that need to be resolved between the ministry and PERUNTEL will arise outside of this framework, the corporate plan will provide a consistent reference point for assessing its performance, and the corporate planning cycle will provide a mechanism to adjust targets and priorities each year. 8. Two options are presented for the corporate planning process: they differ regarding, first, the timing of the planning and budgeting cycles and second, the degree of involvement by outside parties. In the first eption, labelled 'stand-alone," outside participation is "lighter" and the two cycles (planning and budgeting) are independent and not in phase (see Table 1 and Figure 1). In this option, the corporate plan would serve primarily as a communication tool. The downside risks, however, are that the plan may not commit the shareholders; that it may be too disconnected from the budget; that it creates a long lag between the end of the planning cycle (March) a-id the start of the operational period (January of the following year); aito that it does not provide easily for a performance monitoring activity. 9. In the second option, labelled 'Interactive," outside participation is more active and the two cycles (planning and budgeting) are concurrent, with a three month lead by the planning cycle (see Table 2 and Figure 2). There is more active participation by the shareholders and other agencies, and a tighter linkage with the budget. The downside risk, however, is that more time and effort will be required to coordinate all elements with outside participants and with the budgeting process. 10. The two options should be considered and discussed before a final decision is made. The choice should aim to bring benefits to all participants, formalize the various relationships, and assure that all specific responsibilities are addressed properly. A consensus should be reached among the participants on this matter. Ir -32- ANNE C Page 5 sle 1: CORPORATE PLANNING PROCESS--KEY ANNUAL ACTIVITIES Option 1: "Stand-Alone" ScheduLe Key Act tie_su September 1989 Start up of corporate planning process for period 1991-95: internal analyses, external discussions. December-1989 Shareholders meeting for budget approval for year 1990. March 1990 Presentation of final corporate plan (1991-95) to shareholders and other - ~~~ participants. April 1090 Submission of "Blue Book" to Government. June 1990 Meeting of the Intergovernmental Group on Indonesia: review of foreign exchange requirements. 33 - FIGURE 1 PERUMTEL PLANNING AND BUDGETING CYCLE Option 1: STAND-ALONE 1989 March FI lCotpora Plan |l April May June I Sta Budgdeg Prooe for year 1990 Augut September Stait Planning Press Draft 8udget Ocober orpeod 1991-1995 IWPT & Rnae November Reio December Shareholders Approval of 1990 Budg 1990 January Febuary ial Coporate Plan: March 9195 Draft Blue Book April Review & NUY 100 ~~~~~~~~~~~~~~~Approa May IGI.GI3 Approva June July August September Odober November . 1l991 Janu -34 _ 1U. Page 7 Table 2: CORPORATE PLANNING PROCESS--KEY ANNUAL ACTIVITIES Option 2: -Interactive- Schedule e Activiteg March 1989 Sbareholders' meeting: Review of 1988 performance. April 1989 MTPT and Department of Finance Issue a *call letter asking PEROMNEL to prepare its corporate plan. The *call letter" includes statements of guidelines, priorities and concerns fro MTPT after consultation with the Department of Finance and WAPPENAS. may 1989 A draft corporate plan is sent by PERUNTEL to staff personnel at HTPT, for discussions and comments. June 1989 Senior management of PERUETEL makes a preliminary presentation to the MTPT Minister and the Secretary General. PERUNTEL starts the budgeting process for year 1990. July-August 1989 PERUNTEL makes revisions and modifications to the plan; discussions are held with BAPPENAS and the Department of Finance to obtain their approval in principle for the five-year capital budget on a rolling basis. September 1989 PEWUMTEL senior management discusses the plan with the Board of Supervisors. Decemiber 1989 Shareholders' meeting: approval of the plan for 1990-95 and the budget for 1990. March 1990 Evaluation of performance regarding quantitative and qualitative corporate objectives for PERUMTEL. Discussion at shareholders' meeting at the same time as presentation of audited financial statements. - 35 - FIGURE 2 PER UMTEL PLANNING AND BUDGETING CYCLE Option 2: INTERACTIVE 1989 March Sarehol evw of April MW Fnd S May 0r&P IS.uitto M June PrfiiaYPWlUO~ Star Budgeting Proes June ~~~~MTPT Mkdet and _ute July f~uad or yea 1990 August September Ioard of Supuwviara Draft Budget Odctober MTPT & Finance November RwIs December Shaeholders Approal Of 1990 Buget 1990 JanuaXy February March Drift Blue Book April ------ P & June IGGI U APPrvA July August September Octber November December February - 36 - ANUEX D Page 1- TEICOSUICATION SEQ SUD ,.aA 'IRUMEL #s Presnt Tariff A. Telephone Installation Charges 1 1. Category I of Tel gphone EXccabng (a) Main connection 500,000 (b) Branch connection 63,000 2. Categnry II of Telenhone Exchange (a) Wain connection 350,000 (b) Branch connection 32,000 3. Category III of Telenhone hAhange (a) Main connection 200,000 (b) Branch connection 19,000 4. Categorv IV of Telenhone ExZhang (a) main connection 175,000 (b) Branch connection 13,000 5. Category V of Telephone Exchange (a) Main connection 125,000 (b) Branch connection 10,000 6. ,Categor VI of Telephone Exchang (a) Main connection 90,000 (b) Branch connection 7,000 7. Category VII of TelegoM h SCMhanSe (a) Main connection 75,000 (b) Branch connection 3,750 B. Monthly Rent of Teleuhone Connection 1. Automatic Telgbhone Exchaige (a) Category I and II (i) Main connection 3,500 (ii) Branch connection 1,750 (b) Other category (i) Main connection 2,000 (ii) Branch connection 1,000 i See Note 1, Animx D, p. 4. - 37 - ANNEX D Page 2 2. Automatic Telephone Exchantp up to 500 Nfmbers (a) main connection 1,000 (b) Branch connection 500 3. Auomatilc Telephone ExchaWge Over SQO !umbera (a) Main connection 2,000 (b) Branch connection 1,000 C. Telephone Conversation Ratg 1. Automatic Tele2houe (a) Local pulse of 3 minutes 75 (b) Local call of 3 minutes from PCO SO (c) Internal region per pulse 75 (d) Interregion per pulse with duration 75 up to 100 km, 6 seconds 100-200 km, 5 seconds 200-300 km, 4 seconds 300-1,000 km, 3 seconds over 1,000 km, 2 seconds. 2. Nonautcjmatic T2lephg (a) Local Included in monthly subscription (b) Local from PCO per call 50 (c) Internal region per minute 75 (d) Long-distance (normal service): up to 100 km 375 100-200 km 450 200-300 km 560 300-1,000 km 750 over 1,000 km 1,125 (e) Long-distance urgent service (twice the rates shown in (d) above) D. TeletArpb Rate 1. Presentation rate per telegram 100 2. Domestic rate per word, normal service (minimum 10 words) 10 E. Telex Jate 1. Installation fee Same as telephone main exchange 2. Monthly subscription 7,500 3. Pulse rate with duration: up to 50 km, 12 seconds 50-300 km, 8 seconds 300-750 km, 6 seconds over 750 km, 3 seconds 38- ~ANNEX D Page 3 F. Private Leased Circuits 1. lnstlationfe,e ggr giair (inside service border area) Category I 250,000 Category II 175,000 Category III 100,000 Cagetory IV 87,000 Category V 62,000 Category VI 45,000 Category VII 37,500 2. ltnthly Charmes (a) Telephone circuit (analog) (i) Local (per pair within one local area inside 75,000 service border area) (ii) Long distance and trunk Zone Distance Government Business and (km) private 0 up to 25 180,000 100,000 I 25-100 900,000 2,520,000 II 100-200 1,080,000 3,150,000 III 200-300 1,350,000 3,150,000 IV 300-1,000 1,800,000 4,200,000 V over 1,000 2,700,000 6,300,000 (b) Telegraph and Data Circuits Leased telegraph circuits are available up to a maximum transmission rate of 50, 100 and 200 baud. Leased data circuits are available for transmission rate from 300 bps. (i) WIthin one local area: Printer, per pair per connection 75,000 Data communication, per pair 100,000 - 39 ~ ANN D Page 4 (Ui) Long distance and trunk leased circuits Tras- oission Zone Distance Government Business and rate private 50 baud I up to 100 180,000 420,000 (full II 100-200 216,000 504,000 speed) III 200-300 270,000 630,000 IV 300-1,000 360,000 840,000 V over 1,000 540,000 1,260,000 75 baud I 198,000 462,000 II 237,000 554,000 III 297,000 693,000 IV 396,000 924,000 V 594,000 1,386,000 100 baud I 216,000 504,000 II 259,000 604.000 III 324,000 756,000 IV 432,000 1,008,000 v 648,000 1,512,000 200 baud I 288,000 672,000 U1 345,000 806,000 III 432,000 1,008,000 IV 576,000 1,344,000 V 864,000 2,016,000 300 bps I 900,000 2,100,000 II 1,080,000 2,520,000 III 1,350,000 3,150,000 rv 1,800,000 4,200,000 V 2,700,000 6,300,000 NOTES 1. Location Categories Category I Jakarta area Category II Aedan, Surabaya Category IXI Bandung, Denpasar, Palembang, etc. Category IV Yogyakarta, Bogur, Ambon, etc. Cagetory V Madiun, Sabang, Cianjur, etc. -40 AM= D page Category VI Kendal, Soingaraja, etc. Category VII CSamis, Banjar, etc. *2. Telegraph circuits are for the following operating modes: Half-duplex Full-duplex (4-wire connection) - 41- TECOMCATIONS SECTQR STR ANNEI E. STATISTICAL ANNEX Table of Contents E-1 Financial Statements of Sector Entities, Existing Service and Performance Data E-1.1 Financial Statements E-1.1.1 PERUMTEL's Historical Income Statements E-1.1.2 PERUNIEL's Historical Balance Sheets E-1.1.3 PERRJTEL's Historical Funds Flow Statements E-1.1.4 PT Indosat's Historical Income Statement E-1.1.5 PT Indosat's Historical Balance Sheet E-1.1.6 PT Intiis Historical Income Statement E-1.1.7 PT Inti's Historical Balance Sheet E-1.2 Historical Data of Existing Services E-1.2.1 Historical Data for Existing Facilities and Services E-1.2.3 Traffic per DEL and Growth Rates 1-1.3 PT Inti: Current Product Range and Production Capacity 1-1.4 Telephone Switching Systems in Operation 1-2 Long-distance Call Analysis E-3 Delays in System Commissioning 1-4 Repelita V Investment Program E-5 Human Resource Data E-5.1 PERUMITELs Employees by Category, 1983-88 E-5.2 PERUMTEL's Employees by Unit and Category E-5.3 PERUMTEL's Employees by Level and Category E-5.4 PERUMTEL's Employees by Level and Unit E-5.5 PERUMTEL's Employees in Headquarters and Category 1-5.6 PERUMTEL's Employees in Headquarters by Level and Unit 1-5.7 PERUMTEL's Employees by Birth Year E-5.8 PERUMTEL's Employees by Education E-5.9 PERUNTEL's Staff to Mainline Ratio E-5.10 PERUMTEL's Manpower Efficiency by Region V - 42 - ,NNEX E- Page 1 INDONESIA TzWA0N9MN=I0AINS SECTO STUDY PRRUMTELs Historical Income Stateme_ts (Current Rp billions) Fiscal Ye,ar &ndig December 31 1981 1982 1983 1984 1985 1986 19871A Onerating RevenUe Telephone 203.47 285.80 354.86 379.51 463.27 527.23 617.28 Telex 24.47 20.21 29.25 34.61 44.69 47.04 52.19 Telegraph 6.09 5.21 5.95 6.55 8.03 8.81 9.74 Others 14.39 13.25 18.66 23.38 26.38 31.11 37.80 Total Revnu 248.42 324.47 408.72 444.05 S42.37 614.19 717.01 Ooeratin Expen,ses Personnel 53.41 70.89 79.26 105.31 133.17 152.02 167.00 Material and Transport 31.08 40.34 51.27 73.31 91.5 113.22 110.18 Repair & Maintenance 40.35 43.06 76.38 89.31 73.43 84.65 84.32 Depreciation 72.51 104.67 125.93 123.30 130.42 142.32 319.03 Others 2.16 4.74 l1'7 2.21 1.57 3.02 5.32 Total Riwenses 192.51 263.70 334.01 393.4A4 430.02 49,23 685.85 Operating Income 48.91 60.77 74.71 50.61 112.28 118.96 31.16 Interest 17.91 20.52 30.95 30.47 25.47 34.39 33.45 Nonoperating Income 5.38 11.30 18.28 50.94 74.15 103.40 99.51 Pretax Incone 36.38 51.55 62.04 71.08 160.96 187.97 97.22 Income Tax 16.37 23.14 26.12 1.27 40.13 53.79 16.45 Neh nq=m ZQ01 28.41 35.92 628iL 12Q.83 134.18 80.77 Ratios: Operating Ratio (%) 80 81 82 89 79 81 96 Rate of Return on Book Valu6 Assets (%) 11.1% 11.5% 14.1% 10.0% 24.5% 26.9% 3.8% Jg Unaudited statement. 43 ANNEX E-1 Page 2 ZNDlEIA IEIECVMWSCATIONS MMTO ATD Table E-1.1.2 PRMM=L's Hjiseorical Bala)ne ftets (CUr-rent Rp billions) Fingal Year londtn Dacembe 31-_ 1981 198 1983 195;4 i985 1986 1987/a !Srrinn Assets Cash - 183.84 194.01 140.94 162.84 52.74 116.51 64.01 Short-term Investments 50.00 167.02 433.66 445.72 464.52 Accounts Receivables 80.07 112.58 156.07 149.48 115.77 129.88 123.1 Inventories 34.03 70.08 72.71 70.50 87.59 83.08 67.41 Others 34.56 57.26 86.17 68.15 66.44 97.93 178.53 Assets 132.50 433.93 505.89 617.92 756.20 873.12 8L7.57 Gross Fixed Assets 579.23 733.19 820.33 894.63 938.15 1028.79 1917.49 Less: Acc. Depreciation 139.02 205.73 292.31 387.99 478.95 586.56 1100.1 Net Fixed Assets 440.21 527.46 528.02 506.64 459.20 442.23 817.39 Work in Progress 111.13 81.69 66.80 108.78 196.25 316.69 502.33 Other Assets 10.57 13.02 0.55 0.05 0.03 0.00 0 Investments 2.72 2.58 5.75 7.13 0.00 0.00 0 Deferred Charges 145.28 132.68 102.90 79.46 54.91 48.04 122.98 Total Other Annetta 158.57 148.28 109.20 86.64 5494 48-0A 122.98 Total Assea 1.042.41 1219L.36 1,209,91 1L320.05 1.466.59 1.f6S080 2.34Q27 Liabilities Current Llabilities Accounts Payable 16.51 38.43 39.33 54.35 61.64 75.71 86.88 Other Payables 85.20 125.90 140.97 121.87 121.41 130.01 141.27 Current Portion of L-T-D 11.02 54.18 55.33 56.46 60.14 65.67 73.49 T ties 112.73 218.51 235.63 232.68 243.19 271.32 3Q1.64 Other Liabilities 61.61 127.87 147.99 79.69 99.36 171.28 176.44 I.on Tenm Debt 516.95 467.79 421.12 476.81 510.83 563.85 730.31 Capital 86.00 86.00 86.00 350.00 350.00 350.00 350 Reserves & Retained Earning 265.12 282.19 319.17 180.87 263.21 323.56 781.88 To-tal_Equitr 351.12 368.19 405.17 530.87 613.21 673.56 1131.88 L-alities 1.042.41 1.t82.36 1.209.91 1,320.05 1,466-59 1.680.08 2.340.27 Ration Current Ratio (times) 2.95 1.99 2.15 2.66 3.11 3.22 2.98 Debt/Total Capital(%) 62 62 58 51 50 52 44 L& Unaudited statement. - 44 bANEXLE- Page 3 TQECONMUCATIO QE STIUD Table g-1.1.3 PERUMTELMs Historical Funds Elow StateMents (Current Rp billions) Fiscal Year Ending Decemuber 31 1981 1982 1983 1984 1985 1986 1987L& Net Income 20.01 28.41 35.92 69.81 120.83 134.18 80.77 Depreciation 72.51 104.67 125.93 123.30 130.42 142.32 319.03 Interest 17.91 20.52 30.95 30.47 25.47 34.39 33.45 In2rnal Cash -izeneration 110.43 153.60 192,80 223.8 2Z6.72 310J9 Equity 31.54 66.52 25.77 81.80 28.56 32.84 144.11 Other Liabilities 6.8-, 5.63 9.05 8.96 3C.r. 81.34 14.88 Long-term Debt 48.30 29.42 27.89 47.86 97.q2 118.69 204.86 Total Sources 192.16 255_51 362.20 433.23 543.76 727.10 .9ngligations Capital Construction 57.28 124.52 72.25 116.28 130.99 211.08 499.61 GOI Development Funds 11.01 15.63 19.76 38.40 66.46 73.80 44.42 Bonus 2.00 2.84 3.59 6.98 12.08 13.42 8.08 Pension 1.60 2.27 2.87 5.58 9.67 10.73 6.46 Social 0.40 0.57 0.72 1.40 2.42 2.68 1.62 Debt Service Interest 17.91 20.52 30.95 30.47 25.47 34.39 33.45 Repayment 7.07 11.02 54.18 55.33 56.46 60.14 65.67 Total Debt Service 24.98 31.54 85.13 85.80 81.93 94.53 99212 Change in Working Capital60.44 -4.S4 53.69 113.92 124.02 83.19 -13.62 Other Assets 39.45 82.14 17.50 -6,16 5.67 54.32 151.41 197.16 255.17 255.51 362.20 433.23 543.76 797.10 0 0 0 0 0 0 0 Net Cash Generation as 8 of capital expenditure & 129.97 85.48 121.68 85.47 97.97 67.54 57.99 Debt Service Coverage 4.42 4.87 2.26 2.61 3.38 3.29 4.37 (times) LA Unaudited statemeitt. Ho Net cash generation is internal cash generation after debt service and appropriations required by law such as Government Development fund contribution (55% of net income), etc. -45- ANNEX -1 Page 4 TELECWOMUNICATIONS SECTOR STUDY Table E-1.1.4 PT Indosat's HistoricaL IncoMe Statement (Current Rp billions) Fiscal year ending December 31 1983 1984 1985 1986 1987 fterating Revenue Telephone 68.69 88.21 111.17 128.36 181.05 Telex 36.21 45.42 54.04 52.38 58.86 Telegraph 1.93 2.02 2.01 2.02 2.38 Others 4.24 5.09 8.83 11.17 14.40 Total Revenue 111.06 140.73 176.05 193.93 256.69 ggerating Fbzensea Operation 26.57 33.19 51.81 60.00 73.31 Personnel 4.70 5.78 7.29 9.14 11.49 Depreciation 1.92 2.09 3.82 4.98 6.68 Maintenance 1.26 1.35 2.48 3.15 4.20 Admin & General 3.08 3.94 4.79 5.44 5.99 Total Expenses 37.53 46.35 70.18 82.71 101.67 Operating Income 73.53 94.38 105.87 111.22 155.03 Other income & expenses 2.93 1.00 1.01 2.71 10.88 Miscellaneous /A 0.00 1.17 (0.61) 11.65 3.93 Pretax Income 76.46 96.55 106.27 125.57 169.83 Income Tax 33.62 30.78 33.67 39.'98 55.32 Net Income 42.84 65.77 72.61 85.60 114.52 Ratios: Operating Ratio (a) 34 33 40 43 40 Rate of Return on equicy 82.5% 60.1% 54.3% 58.1% La Effect of accounting changes and extraordinary itemq. - 46 - Page 5 nxogs~L JJItoffNICxONS SECTOR STUD ,Table A- 1.1. 5 PT Indosat's Historical BAlance Sheet (Current Rp billions) Fiscal yej eding December 31 1983 1984 1985 1986 1987 Currenmt Assets Cash 0.76 1.86 1.40 0.44 1.33 Short-term Investments 21.19 27.26 38.85 61.64 82.40 Accounts Receivables 44.56 56.13 64.03 77.37 93.05 Advance Payments 0.33 0.69 2.30 3.96 3.41 Others 1.37 3.49 2.85 3.90 2.59 Total Current Assets 68.21 89.42 109.44 147.30 182.77 Gross Fixed Assets 38.01 66.19 88.82 118.66 124.71 Less: Ace. Depreciation 8.36 10.46 14.27 19.24 23.97 Net Fixed Assets 29.65 55.73 74.55 99.42 100.74 Work in Progress 12.18 12.87 20.33 10.04 31.57 Intangible Assets 11.41 9.51 7.61 5.71 3.80 Other Assets 3.43 3.46 3.34 0.89 6.53 Investments 0.00 0.00 8.27 9.27 12.65 Total Other Assets 14.84 12.97 19.21 15.87 22.99 Ttal Assets 124.88 170.98 ,223.53 272.63 338t07 Liabilities Current Liabilities Accounts Payable 15.23 6.33 4.97 9.53 19.40 Other Payables 4.19 5.20 2.57 21.27 9.86 Current Portion of L-T-D 7.52 Total Current Liabilities 19.42 11.54 15.05 30.80 29.26 Other Liabilities Long Term Debt 25.75 38.69 50.74 44.72 44.28 Equity: Capital 35.00 35.00 70.00 70.00 120.00 Reserves & retained earning 44.72 85.76 87.73 127.12 144.53 Total Equity 79.72 120.76 157.73 197.12 264.53 Total Liabilities 124.89 L70.98 223.53 272.63 338.07 Ratios: Current Ratio (times) 3.51 7.75 7.27 4.78 6.25 Debt/Total Capital (%) 24.42 24.26 24.34 18.49 14.34 -47- ANNEX E-1 Page 6 rIDoNEsrA TELECOMMUNICATIONS SECTOR STUDY Table E-1.1.6 PT Inti's Historical Income Statement (Current Rp billions) Fiscal year endina December 31 1983 1984 1985 1986 1987 Sales Revenue 7.81 7.46 41.08 36.40 57.13 Cost of Goods Sold 5.72 5.29 33.57 28.38 48.81 Gross Margin on Sales 2.08 2.17 7.51 8.01 8.33 Marketing & Admin Expenses 1.59 1.91 3.69 3.25 4.98 Income from Operations 0.49 0.26 3.82 4.76 3.35 Other Revenue 0.09 0.99 0.61 1.15 2.61 Other Expenses 0.06 0.22 0.61 4.27 2.24 Miscellaneous La 0.00 0.00 0.00 0.00 (0.73) Pretax Income 0.52 1.03 3.82 1.64 2.98 Ratios: Gross Margin (1) 73.3? 70.92 81.7Z 78.00 85.42 Return on Equity tl) Lb 2.5Z 4.7Z 9.1S 2.82 5.0? Return on Sales (Z) 6.7Z 13.8? 9.3S 4.5Z 5.22 /a Extraordinary items. /b Previous year's equity and new capital. -48- ANNEX 3-1 Page 7 INDONESIA TELECQNMUNICATIONS SECTOR STUDY Table E-1.1.7 PT Intil's Historical Balance Sheet (Current Rp billions) Fiscal year ending December 31 1983 1984 1985 1986 1987 Current Assets Cash 3.88 8.90 3.10 0.80 6.36 Short-term Investments 0 0.00 0.00 0.00 29.00 Receivables 1.97 3.58 19.84 27.32 75.92 Inventories 6.57 18.82 26.44 62.40 71.79 Others 0.97 2.94 1.51 3.27 7.30 Total Current Assets 13.39 34.24 50.88 93.78 190.36 Gross Fixed Assets 3.83 15.86 19.33 25.18 26.84 Less: Act. Depreclation (0.95) (1.26) (2.69) (4.43) (6.50) Net Fixed Assets 2.88 14.60 16.63 20.76 20.34 Work in Progress 2.52 0.00 2.59 0.00 0.23 Intangibles & other Assets 0.50 5.14 8.84 27.31 33.32 Lesst Acc. AmortLzation (0.44) (0.44) (1.61) (3.25) (6.68) Total Other Assets 0.96 4.70 7.23 24.06 26.64 Total Assets 18.85 S3.54 77.34 138.60 237.58 Liabilities Current iLabillties Accounts Payable 3.19 12.46 18.83 49.54 14.46 Other Payables 6.43 17.58 18.22 21.69 108.98 Bank Loans 0.00 0.00 0.00 25.83 0.00 Total Current LLabllities 9.62 30.04 37.05 97.06 123.44 Long-term Liabilities 6.47 0.73 0.73 0.73 71.83 EquLty t Capital 0.90 20.04 33.36 33.65 33.65 Reserves & Retained arnainsg 1.86 2.73 6.19 7.16 8.66 Total Equlty 2.76 22.78 39.56 40.81 42.30 Total Liabilitles & EuuAtv 18.85 53.54 77.34 138.60 237.58 Ratiost Current Ratio (tImes) 1.39 1.14 1.37 0.97 1.54 Debt/Total Capital (2) 70.1S 3.1S 1.82 1.8S 62.92 - 49 - ANNE -1 Page 8 MTZIECMHUICATIONS SE&=O STUD Table E-12.2 Pwerformance. Indica;grs Fiscal Year Ending December 31 1981 1982 1983 1984 1985 1986 19871A Facilities and S_aff Exchange Capacity 628,600 645,440 666,100 697,840 779,378 838,555 905,931 Telex Capacity 12,180 12,180 12,220 12,790 13,690 16,200 17,302 # of telephone subscriber 427,185 475,459 503,253 536,102 602,356 658,341 759,128 # of telex subscriber 6,740 8,105 9,292 10,289 11,285 12,723 13,733 # of additonal telephone 57,392 48,274 27,794 32,849 66,254 55,985 100,787 * of additonal telex 1,433 1,365 1,187 997 996 1,438 1,010 % Fill telephone 68 74 76 77 77 79 84 % Fill telex 55 67 76 80 82 79 79 # of employees 26,887 26,508 28,262 28,872 32,990 36,091 41,000 Employees/1,000 DELs 63 56 56 54 55 55 54 (Rp '000) Telephone Rev. per DEL(av) 511 633 725 730 814 836 871 Telex Rev. per line (av) 4,062 2,723 3,363 3,535 4,143 3,919 3,945 Av Op. Cost per DEL(av)6a 314 347 418 510 517 549 508 % Operating Ratio 80 81 82 89 79 81 96 Net cash generation as 8 of capital expendi ture id 130 85 122 85 98 68 58 Rate of Return on average net book valued assets 11.1% 11.5% 14.1% 10.0% 24.5% 26.9% 3.8% Debt Service Coverage 4 5 2 3 3 3 4 # Days Accounts Receivables 118 127 139 123 78 77 63 Current Ratio 2.9 2.0 2.1 2.7 3.1 3.2 3.0 Debt/(Debt+Equity) Ratio 62 62 58 51 50 52 44 ^ Unaudited Statement. b Prelimanary results. 4. Total cost for staff, maintenance,etc. but excluding depreciation,debt service, corporate tax and other financial charges. JA Net cash generation is internal cash generation after debt service & appropriations required by law such as Government Development fund contribution(550 of net income), etc. - 50 - ANXE Page 9 INDONESI TELECOIMUNICATIOI. $1S CTOR STUOM Table E- P. g. Historical Data for Existing Facilitles and Services 1988 1980 1981 1982 1983 1984 198 1998 1987 (estiate) Indonesia Local telephone serviceS Number of telepboes 512,880 584,181 699,301 717,660 788,365 717,990 804,385 890,117 1,000,539 Number of D0L 369,843 427,185 475,459 503,253 536,102 602,3S6 658,341 759.128 800,000 Automatic 319,303 375,424 420,518 444,463 473,736 531,034 580,454 668,949 761,507 )Ianuat 50,540 51,761 54,941 58,790 62,366 71,322 77,887 90,179 95,996 AnxAal connection of DEL$ 57,342 48,274 27,794 32,849 66,254 55,985 100,787 97,825 Average growth Ln subacrlber con- nection. (X p.s.) 9-73 8.97 8.48 10,82 7.24 Number of telephone exchnges 594 600 666 679 683 693 704 714 721 Automatic 137 156 163 170 175 182 195 223 223 Manual 457 444 503 509 408 511 509 503 498 Installed Capcity of exchange 598,700 618,600 645,400 666,100 697,800 779,378 838,555 905,931 983,721 Autasttc 524,900 549,500 555,400 576,800 601,400 674,488 728,000 791,335 871,935 1atowl 73,800 79,100 90,000 89,300 96,400 104,899 110,555 114,596 111,786 Exanse fill (2) 61.77 67.96 73.67 75.55 76.83 77.29 78.51 83.80 87.11 Automttc (2) 60.83 68.32 75.71 77.06 78.77 78.73 79.73 84.53 87.34 tnAl (2) 68.48 65.44 61.05 65.83 64.70 68.00 70.U 78.69 85.87 Telegraph a" Telex TSlegraph offiees 623 627 638 639 641 659 665 662 659 Centex terminals 381 440 507 544 599 663 775 800 8o Telex exchages 25 27 27 28 19 30 34 36 38 Installed telex *apacity 11,530 12,180 12,180 12,220 12,790 13,690 16,200 17,300 20,800 Telex connetiaons 5,307 6,740 8,105 9,292 10,289 11,285 12,723 13,733 14,501 Average growth of telex subscriber. (1 p.a.) 18.00 13,75 11.93 10.26 8.96 - 51 -ANNE B-1 Page 10 Table 3-1.2.1 tC.atIau.dw 1988 1980 1981 1988 198 9 1984 15 1986 198? (estLmat*) S laphaus trafflc - pule (aln) 3 9,353,4 4,315.9 4,962.4 5,147.8 5,365.6 5,504.1 u,898.0 6,781.2 ,447.6 JWm dltauce is - cells ('000) 10,868.5 10,212.6 10,632.2 10,038.2 9,884.3 9,814.8 10,726.2 11,904.9 12,984.8 - minutes ('000) 63,160.0 64,174.8 67,621.5 53,551.5 57,028.4 57,421.6 65,222.0 72,445.3 75,286.0 Interastlonal - aLIS ('000) 1,353.4 2,142.0 2,689.7 3,110.1 3,344.6 4,211.1 5,2Y5.6 8,057.2 10,037.8 - mtintes ('000) 8,864.4 13,025.4 16.707.1 18,7"3.1 20,900.6 22,959.2 26,712.6 34,068.4 40,310.3 5l 1 raph truffic Doeagle - 3u1eb ('000) 6,455.4 6,92.7 7,141.8 7,855.9 8,418.8 9,086.7 10,377.2 11,090.2 11,618.7 - words (ala) 190.9 "05.4 214. 240.1 265.7 284.5 321.0 336.8 368.2 £ntern tienal - zmaber ('000) 231.6 100.7 140.8 104.9 81.3 67.6 60.1 57.4 61.4 - words (aln) 6.8 5.7 4.5 3.3 2.5 2.2 2.0 1.8 1.7 telex traffle - Pulse (Al) ik 56.9 82.3 21.9 336.4 37S8.4 421.2 435.4 471.0 512.3 znt rnwtioagl - calls ('000) 2,190.5 2,830.9 3,284.6 3,686.0 4,295.8 4.221.8 4,298.3 3,850.1 3,420.5 - mInutes ('000) 6,946.2 8,037.6 10,132.8 11,01S.6 12,628.3 12,643.4 12,732.3 11,052.4 10,076.4 lz lacludes one Lnternatfonal telex ecanctlon. E2 Represents only subserOlbr conneotlon and xcsludes IUUIFfU's use. LS Represents m -a call. - 52 - Page 11 INDONES1 I&IIMICA'TIONS SECTO sUD Z&le E-1.2.2 Traffic per DEL and Growth ates 1988 1980 1981 1982 1983 19S4 1985 1986 1987 (estimte) International Call rate 3.66 5.01 5.55 6.20 6.24 6.99 8.01 10.61 11.71 Gowth rate (1 p.&.) 27.01 9.68 10.45 0.62 10.76 12.76 24.50 9.39 Mnutes Per call 6.55 6.08 6.3S 6.02 6.25 5.45 5.06 4.23 4.02 Doerstlc Pase rate 10,502 11,49% 11,801 11,582 11,326 10,365 10.161 10.137 9,780 Otovb gate (z p.a.) 9.46 2.65 -1.85 -2.21 -8.49 -1.97 -0.24 -3.52 Interlock manual cll, rate 29.39 23.91 22.36 19.95 18.44 16.29 16.29 15.68 15.15 Ggowth rate (X p.&.) -22.92 -6.91 -12.11 -8.19 -13.15 -0.01 -3.89 -3.50 Ninates per Mal 5.81 6.28 6.36 5.33 5.77 5.85 6.08 6.09 5.80 Domestic Palse gte 10,722 12,211 33,547 36,203 $6,777 37,324 4,221 34,29? 35,329 OgoWth gQte (I p.-.) 13.89 174.74 7.92 1.59 1.49 -8.31 0.22 3.01 intemn4tioial Call rate 412.76 420.01 405.26 3".46 417.49 374.11 337.84 280.35 235.86 Grovth rate (t p.-.) 1.76 -3.51 -2.91 6.11 -10.39 -9.70 -17.02 -15.87 Kimites per call 3.17 2.84 3.08 3.01 2.94 2.99 2.96 2.87 2.95 -53- ANXE-1 Page 12 INDON3L1 Table- E- . 3 PT Lnti: Current Product Range and Production Caoac ity Capacity/ Output Description Unit year/shift Shift 2 Shift 3 Switching and Terminal Digital Public Exch. LU 150,000 270,000 375,000 PABX LU 5,000 9,000 13,500 Telephone set Set 166,000 298,000 415,000 Pay phone Set 3,000 5,400 7,500 Trawqlsmison Transceivers HF Set 1,680 3,024 4,200 Mobile telephone Set 1,625 2,935 4,063 Rural telephone system 5 9 13 Small earth station Unit 50 90 130 Nultiplex/PCM CH 10,800 19,440 27,000 Digital microwave Link 5 9 13 Radio/wind sonde Set 15,000 27,000 37,500 Packsatnet LU 150 270 375 54A E-1 Page 13 IDNSIA ZTLEOMUIaGA O SECTOR STUDY Tab12 L-.A Telephnne Switching Systems In Qperation Type of exchanges Manufacturer Local exchanges manual ABK tAE ADK LME Automatic EMD FG.FGA.55V Siemens ESK 10,000 Siemens UR 49A Philips ARF 101.102 LME ARF 521 LME *DKS 44223S SEL PC-1000 DTM NEC-230 S/B/L NEC NEC-100 B NEC HIT-C23S Hitachi PRX 205 A Philips MC/1OC BTM STDI/EWSD PT Inti/Siemens Tranit Exchang2g son-SPC ARM 201 IRE CIT JANUS CIT PC-100/comb. BTM SPC MC/lOC BTM STDI/EWSD PT Inti/Siemens ANNEX E-2 Page I -55 - INDONESTA TBLECOHKUNICATIONS SECTOR STUDY LONG DISTANCE CALL ANALYSIS 1. Actual status and problems involved in the Indonesian SLJJ network from the view point of serTIS SR 8X Delays in System Commissioning Outside Trans Com- Delay in com- plant Switching mission mi8sioning sLasiooing ----------- (Month/Year) ------------- (mothb) Medan Sukaramai t2 3/89 3/89 5/89 1 Rantau Prapat 2/89 3/89 A 896/90 15 Padang Panjang 5/88 12/88 12/89 12/89 17 Payakumbuh 7/88 1l/ug ._ 12/88 4 Solok 9/88 2 - 2/89 4 PLB Talang Kelapa 12/88 2/89 3/89 2 PLR Kentenujung 12/88 k2 /8 3/89 2 Bats Raja a2 12/88 -- 2/89 0 Prabumulih 12/88 12/88 12/89 12 Curup 4/88 12/88 6L20 6/90 13 Lubal Linggau 6/88 12/89 3/90 20 Kedoya 3/89 52 3/89 5/89 1 .ieruya 3/89 =2 3/89 9/89 5 Jepara 9/89 Am 6/89 3/90 17 Purworejo 11/88 39 6/89 3/90 15 tUngaran 2/89 10/88 -^ 2/89 3 Temajggung 1Li2 2 * 1/89 0 Pemalang 8/88 " '12/89 3/91 30 Blora 2/89 ;/&q 12f89 12/89 9 SBY Darmo 2Lf89 9/89 9/89 0 SBY Tandes 22 11/89 9/89 2/90 4 Denpassar-l 11/88 -- 1/89 1 Dilli ZLU -- -- 2.89 0 Klungkung 2/88 1/89 4/89 4/89 13 Tabanan 7/88 12/88 4/89 4/89 8 Banjarmasin 3/89 12U9 - - 12/89. 8 - 60 - Pag 1 INWSSIA IUMMMHE CIATIONS SECTOR STUD Renelita .--I Mestment Program 1989-94 1. The Repelita V program will be implemented in two stages in accordance with the availability of resources. Scale of the expansion and annual allocation are shown below. (a) PERWNTEL Plan Batch 1 Batch 2 Line units Line units Total 600,000 800,000 1,400,000 (b) Annual Development Plan 1989 1990 1991 1992 1993 Total Telephone Line units 150,000 165,000 370,000 400,000 315,000 1,400,000 Loca- tions 44 120 73 118 165 520 Telex 5,850 4,350 -- 3,000 2,000 15,200 2. Major projects to be covered by Repelita V program are listed below: (a) Local telephone network Batch I 600,000 l.u. Batch II 800,000 l.u. Total 1,400,000 l.u. (b) Trunk switching system Digital trunk switching 36,000 cct. - 61 - iL= E-4 Page 2 (c) Telex/data system Telex 15,200 l.u. Packet data 2,000 cct. (4) Outside plant Primary cable 1,900 asp and secondary cable (e) Terrestrial transmission Batch I Trans-Sumatra digital microwave Java-Bali second route digital microwave Remote area (additional phase 1 and 2) Jakarta-Surabaya optical fiber cable Batch II Surabaya-Bamnjarmasin SXKL (submarine optical fiber cable) Trans-Sulawesi digital microwave (Phase 1) Remote area (Phase 3 and 4) Rural area (Phase 3) (f) Satellite transmission system Batch I 100 SBK TDHA (Phase 2) SCPC Palapa B 2 R SBN (Phase 1) Batch II 46 SBK SBH 30 SBK Palapa C (g) Other Rehabilitation program for outside plant and microwave system Outside plant maintenance centers ,~~~~~~~~~~~~~~~~~~~~~~~M Z-4 low of~~~~~~~~~~~~~~~~~~~~~~~~~~ fa "dfg in n i 9 peooos . MnIVA C L I e Fe L e Cs cL e L telophftwh l L embag 296 ,s._176 A"16.9$.7 Mn 6.0 Sm 1263$51 I. ,3 4362 istom1 8.02 1, 09.0 UO.8§ 1S4.08 917.19 11.8 .3 11.72 245.0 102.6 l"70 ."t Xl.2 625.39 57.01 saellite _omasi 8.30 42$.04 77 1.s .60 M64 10.98 97." 2.41 . 111 2.50 to." 2.07 SW1 Os." IblnAtm, 2.379 ' 5, ." 0.130 6.5t 0S.20 263.26 04.3 46420S 31. SO $.51 0.00 12.37 0.01 1,7 .20 Otbix ~ 0.14 '. 9." 0.00 $2.4 0.00 2.29 0.00 2. .00 09.39 0.00 0.0 0.00 *4.5 wpttlag lZtS ~10.92 5s.0 0.002 420.14 20.0 36 * M= 0 7817s.1 0.00 90 40.00 MAL 207.200 SA.07 -63- ANNEX E-5 Page 1 INDONESIA TELECONMUNICATIONS SECTOR STUDY Table E-5.1 HUMAN RESOURCE DATA PERUMTEL's Employees br Category, 1983-88 Category 1983 1984 1985 1986 1987 1988 1. Management, administration 6,193 8,326 8,963 9,718 10,055 10,013 2. Engineers 686 663 796 879 891 954 3. T2chnicians 12,020 14,879 15,249 16,674 17,585 17,487 4. Operation 6,252 6,919 6,833 7,143 7,438 7,379 5. Other 3,837 4,673 4,370 4,588 4,924 4,457 Total 28,988 35,460 36,211 39,002 40,893 40,290 -64- Page 2 PERII4TL's Emplovees hS Unit and Cateorv' (November 1988) Engineers and Administra- Unit technicians Operation tion Other Total HQ 1,354 182 2,134 993 4,663 I 1,329 647 603 582 3,161 U1 8S6 347 367 150 1,720 III 853 475 548 224 2,110 IV 3,399 921 1,848 627 6,795 V 1,674 824 762 264 3,324 VI 1,830 886 753 248 3,717 VII 2,362 1,356 975 467 5,160 VIII 916 489 424 216 2,045 Ix 789 330 364 117 1,609 x 1,048 600 673 233 2,554 xi 331 140 166 69 706 XII 372 170 202 146 890 OPS&T 1,225 7 124 91 1,447 Subtotal 193521 73A2Z 9.96 4.2 40.1Q1 Dept. of Posts and Telecom- munications 0 0 3 .0 3 Regional office of Posts and Telecormimications 58 5 15 0 78 DOPT 16 0 48 27 91 PT NTi 10 0 4 3 17 Subtotal & 2 la T;Oul 1a41 7.7 10.Oi3 4.&5Z 40.290 -65 - Pago 3 TELEGOMNUNICATION SECTOR STUDY Tale E-5.3j PERUMNEL' E 1ioveca by Le'Il and Categp y (November 1988) Engineers and Adoini- Level technicians Operation stratton Other Total IV E 0 0 4 0 4 D 0 0 13 0 13 c 0 0 10 0 10 R 0 0 16 0 16 A 0 0 73 0 73 III D 109 1 58 15 183 C 174 6 94 13 287 R 350 47 354 55 806 A 321 110 454 63 948 1I D 764 279 439 147 1,629 C 1,372 534 863 172 2,941 B 2,336 1,074 1.415 155 4,980 A 5,354 2,302 2,383 778 10,817 I D 2,805 800 1,152 820 5,577 C 3,328 1,575 1,505 972 7,380 B 1,218 453 1,010 691 3,372 A 310 198 170 576 1,254 Total 18.441 7.379 10034.457 40.290 Page 4 - s a ~~U2L, PKRUtRll'E ffamIovieea by levl *nd Unit (Uo'umcbe: 1968) OrgnitatLan Unit Dept. Ofc. PT Level I 11 III IV V VI VII VIII X X XI XI IU XIII HQ PIT PIT DOPS In?? Sotl Iv B 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 2 a * 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11 0 0 1 1 13 C 0 0 0 0 0 a 0 0 0 0 0 0 0 8 0 1 1 0 10 5 0. 0 0 0 0 0 0 0 0 A 0 0 0 S0 1 2 2 0 16 A- 0 0 0 2 0 2 0 1 1 0 0 0 1 47 1 7 9 2 75 IZI D 5 1 1 16 3 3 7 1 1 5 1 2 S 111 0 ; 15 3 183 - C 7 8 4 29 14 -l 14 19 4 0 4 2 1 7 158 0 7 5 4 267 a 33 12 20 16 30 38 38 1S 12 27 9. 9 59 404 0 17 4 3 806 A 5? so 31 125 65 86 73 28 26 38 1S 22 18 339 0 12 1 2 948 II 0 93 53 62 220 80 143 136 63 42 69 28 33 89 508 0 5 5 0 1,629 - C 164 183 140 438 230 227 353 106 147 202 48 68 93 534 0 8 0 0 2,941 a 432 196 236 633 554 469 656 250 237 307 70 95 119 700 0 10 15 1 4,960 A 975 576 551 1,368 1,299 1,433 1,502 567 445 604 220 253 277 736 S 5 3 1 10,017 1 369 321 275 865 389 492 957 264 260 324 127 157 400 353 0 0 24 0 5,577 C 693 277 410 1,538 585 647 881 484 309 496 133 178 301 384 0 0 4 0 7,380 - 3 s 241 46 169 1,119 206 147 504 132 93 280 39 51 64 281 0 0 0 0 3,372 A 112 17 151 366 69 14 34 130 36 198 14 21 14 78 0 0 0 0 1,254 3.1 _61 1.720 2.110 6.795 2 3.-17 S.160 2.045 1.609 2.554 706 890 1.447 4.663 . 78 2 1 40.290 -67- , iD Page 5 SMMIA IELECM GUIONST IL= STUDY Table E-5.5 PERUMTELs Emoloyes in Headquarters by Cate&ory (November 1988) Organization Tech- Admini- unit nicians Operation stration Other Total Personnel 33 42 462 152 689 Finance 1 8 425 34 468 Operation 297 77 256 64 694 Supply 70 4 369 323 766 Development 441 1S 242 253 951 Inspectors 16 2 73 2 93 Planning 15 6 44 4 69 Training 364 27 205 102 698 R&D 117 1 58 59 235 Total 1,354 L 134 93 663 FANNEX S-5 Paso 6 Tablo E-5.6 PEXRnUNTKs moloyep sn L oaitn artea p bv Level and rianizatLOn Unt (November 1988) levwel Potaeer l lnencS Supply O4pation Dewlopeent Inspector. PlanSMI tmlaIn 348 total IV E 1 0 0 0 0 0 0 0 0 1 D 3 1 1 2 2 0 0 1 1 ll C 1 1 1 0 1 1 2 0 1 8 a 2 0 2 0 0 1 S 2 0 19 A 8 6 1 7 5 e 5 2 5 47 Subtotal 15 9 A I £ 10 Al A t Z. III D 16 9 21 7 15 11 7 11 14 Ul1 C, 14 19 2- 12 38 10 14 19 3 158 is B 54 54 75 44 a8 iS 13 31 $2 404 A 7S 38 64 39 59 9 2 31 22 $39 subtotal iln 2i2 121 102 221 Al 3 IL I 1.012 T1 D 44 34 104 63 159 3 4 72 25 508 C 45 *1 68 54 125 6 5 151 39 534 a 94 68 84 100 142 8 4 168 32 t00 A 89 in 109 148 147 it 5 104 23 736 Subtotal 2Z 2a in Lal 2 n1 id *95 LIII I D 63 27 36 130 44 1 1 49 2 53 C 87 43 62 79 65 6 3 29 10 334 a 65 21 38 67 5A 4 1 20 12 281 A 28 6 B 14 8 I 0 9 4 78 Subtotal 2L ai 111 2a0 lt IA A 107 itl 1.Q96 Sotal 11"2 *6A 694 212 951 93 19 698 313 1431 -69- Page 7 TEEOMMNIMAIZONS SAMR STUDY PERUNTEL'a Emolovees by Birth Year (November 1988) Birth Year Numbor of employees Percent 1933 250 0.62 1934 294 0.73 1935 380 0.95 1936 452 1.13 1937 430 1.07 1938 538 1.34 1939 652 1.62 1940 770 1.92 1941 561 1.40 1942 872 2.17 1943 785 1.96 1944 876 2.18 1945 898 2.24 1946 740 1.84 1947 811 2.02 1948 878 2.19 1949 1,038 2.59 1950 1,156 2.88 1951 1,196 2.98 1952 1,874 4.67 1953 2,196 5.47 1954 2,201 5.48 1955 1,734 4.32 1956 1,475 3.68 1957 1,081 2.69 1958 1,167 2.91 1959 1,700 4.24 1960 2,135 5.32 1961 2,415 6.02 1962 2,905 7.24 1963 2,613 6.51 1964 1,914 4.77 1965 959 2.39 1966 173 0.43 1967 14 0.03 1968 1 1969 1 Unknown 155 gtal 40. 290 10O.Q -70- AMN LL5 Page 8 TXIECQMMWNCATIONS SETR mmpD PERIyELI's Employees by Education (November 1988) Number of Education employees Percentage University 808 2.01 Academy 1,322 3.28 Senior high school 20,658 51.27 Junior high school 10,212 25.35 Elementary school 7,290 18.09 Tbotal 40,0290 100.0 Male E-3.9 Ratio of Total Staff to Working Lines. 1983-88 Number Employees Number of of main per 1,000 Year employees lines main lines 1983 28,988 503,253 58 1984 35,460 536,102 66 1985 36,211 602,356 60 1986 39,002 658,341 59 1987 40,893 759,128 54 1988 (est.) 40,290 800,000 50 - 71- E-5 Page 9 TETF£tHINDCTONE SCI RSTD ILbAe E-5.IQ gmomarison of Nanoower EfficiSncy among Regions Coparison: Employees Employees Number per per 1,000 main of employees 1,000 main lines based Office Persons Percent lines on Witel IV Department of Posts and Telecommunications 3 DGPT 91 0.2 -- -- Region Office of Department Pasrpostel 78 0.2 -- -- PT INTI 17 0.2 -- -- Headquarters 4,663 11.5 OPSAT 1,147 3.6 -- -- Vitel I (Medan) 3,161 7.8 49 2.3 x Witel IV II (Padang) 1,720 4.2 65 3.1 x Vitel IV III (Palembang) 2,110 5.2 55 2.6 x Witel IV IV (Jakarta) 6,795 16.8 21 1.0 x Witel IV V (Bandung) 3,524 8.7 43 2.0 x Witel IV VI (Semarang) 3,717 9.2 55 2.6 x Witel IV VII (Surabaya) 5,160 12.7 46 2.2 x Vital IV trIII (Denpasar) 2,045 5.1 79 3.8 x Witel IV IX (Banjarbaru) 1,609 4.0 65 3.1 x Witel IV X (Ujungpandang) 2,554 6.3 69 3.3 x Witel IV XI (Ambon) 709 11.7 120 5.7 x Vitel IV XII (Jayapura) 890 2.2 115 5.5 x Witel IV 40,290 100.0