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To: Secret_Agent_Man who wrote (1158)	3/30/1998 10:30:00 AM
From: Michael Ulysses	Respond to of 7703

Here is an excerpt from an article in Fortune Mag's April 13th issue. Mr.Chin is a good deal maker. I think he got in at bottom price. pathfinder.com April 13, 1998 Indonesia: Life Under the Volcano With its currency falling and protests rising, this resource-rich country of 200 million looks as if it's about to erupt. But a lot of Western companies here are betting that the risks they're running will yield rich rewards. Anthony Paul Reporter Associates: Jeremy Kahn & Lixandra Urresta Over lunch at the Jakarta Hilton, John Vondras, an affable Coloradan who is US West's top man in Indonesia, ticks off the problems of running a 500,000-line telephone system in a country whose economy is collapsing. First among them: Vondras' joint venture has to repay a $615 million loan in dollars, but it earns revenues in the rupiah. The local currency has lost 75% of its value in the past eight months, which means that even though revenues are up 26% in rupiah terms this year, the company is racking up massive losses in dollars. "In one month," he laments, "you see your net income wiped out before your eyes."

To: Secret_Agent_Man who wrote (1158)	3/30/1998 12:59:00 PM
From: Michael Ulysses	Read Replies (1) \| Respond to of 7703

The upcoming April'98 article in Fortune magazine mentioned, "A man worried about filling his family's stomachs just isn't going to use his phone," Does it mean that people would tend to use Internet phone because of lower rates? pathfinder.com April 13, 1998 Indonesia: Life Under the Volcano Anthony Paul Reporter Associates: Jeremy Kahn & Lixandra Urresta With its currency falling and protests rising, this resource-rich country of 200 million looks as if it's about to erupt. But a lot of Western companies here are betting that the risks they're running will yield rich rewards. Over lunch at the Jakarta Hilton, John Vondras, an affable Coloradan who is US West's top man in Indonesia, ticks off the problems of running a 500,000-line telephone system in a country whose economy is collapsing. First among them: Vondras' joint venture has to repay a $615 million loan in dollars, but it earns revenues in the rupiah. The local currency has lost 75% of its value in the past eight months, which means that even though revenues are up 26% in rupiah terms this year, the company is racking up massive losses in dollars. "In one month," he laments, "you see your net income wiped out before your eyes." Indonesia's gloom extends far beyond the balance sheet of PT Ariawest International, US West's joint venture with Indonesia's state-owned telecom company. Social unrest is growing. At least five people have died in riots largely directed by the 90%-Malay majority at ethnic Chinese shopkeepers. Food prices are up fourfold since December and still rising. So the easy way out of Vondras' rupiah bind--raising phone rates--can't even be contemplated. "A man worried about filling his family's stomachs just isn't going to use his phone," he says.