Indonesia’s Solusi Tunas Pratama (STP) will take stake in telecommunications operator Bakrie Telecom (BTel) in order to save the financially ailing telecom company by clearing latter’s debt settlement with creditors. As part of the financial assistance, BTel would give up its stake in STP, which is as per the guidelines set by debt postponement petition. BTel will pay thirty percent of its debts by cash within five years. Remaining seventy percent would be paid by convertible bonds.
When BTel gives up its stake in STP, BTel will get around 30.7 million U.S dollars that can be paid back to the STP. This 30.7 million dollars have been considered as a non-current financial asset. BTel will also give partial ownership to two other tower companies, Tower Bersama Infrastructure and Professional Telekomunikasi Indonesia (Protelindo), which is a subsidiary of Sarana Menara Nusantara. STP has around 2,398 kilometers of fiber optic networks in Indonesia and now plans to add 300 to 500 kilometers of fiber optic cables this year, part of which is under deployment.