VZCZCXYZ0006
RR RUEHWEB

DE RUEHJA #0745 1181034
ZNR UUUUU ZZH
R 281034Z APR 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 2218
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAFCC/FCC WASHDC

UNCLAS JAKARTA 000745 
 
SIPDIS 
 
DEPARTMENT FOR EEB/CIP/BS Timothy C Finton 
COMMERCE PASS TO NTIA, ITA, ITA/OTEC Andrew Bennett 
FCC PASS TO Robert Tanner 
 
E.O. 12958: N/A 
TAGS: ECPS ECON ID
SUBJECT: FIRST BROADBAND FREQUENCY "OPEN" AUCTION IN INDONESIA 
 
REF: State 27310 
 
¶1. Indonesian telecommunication officials announced the start of an 
auction process for 2.3GHz radio frequency for broadband wireless 
access.  Only companies or their subsidiaries that are majority 
Indonesian-owned are able to compete per the 2007 Investment Law and 
accompanying Negative List.  Additionally, only businesses with 
Indonesian network or service licenses will be able to compete. 
 
¶2. The Department of Communications and Information (DEPKOMINFO) 
laid out the following process for interested bidders: 
-- Apr 29-May 5 Pick-up bidding document; 
-- May 6 Submit written questions; 
-- May 11-20 Submit pre-qualification documents; 
-- May 29 Announce prequalification results; 
-- June 1-5 Prequalification appeal period; 
-- June 3-9 Pre-auction clarifying meeting; 
-- June 10-12 Implement three round auction; 
-- June 12 Announce auction results; 
-- June 15-16 Auction appeal period; 
-- June 17 Confirmation of auction results. 
 
¶3. Indonesian officials plan to hold future auctions for the 3.3 and 
3.5 GHz frequencies.  No date is set for these future auctions. 
Earlier this year, DEPKOMINFO issued a Ministerial decree 
instructing operators using those frequencies to migrate to other 
frequencies. 
 
¶4. Because of the Indonesian Negative List on Foreign Investment, 
U.S. firms will not be able to participate in the auction unless 
they partner with local companies to create a subsidiary that is 
majority Indonesian-owned.  Interestingly, DEPKOMINFO officials said 
Indosat may not be able to compete because they are majority owned 
by a Qatar firm.  The official added that a majority 
Indonesian-owned subsidiary of Indosat could still participate in 
the auction. 
 
HUME