国际英语新闻：Indonesia's Telkom, Bakrie Telecom in talks on CDMA tie-up

"We will spin off the CDMA unit before we proceed with consolidation," Rinaldi said, adding that it would lead to cost savings of between 10 and 20 percent.?

Meanwhile, Bakrie Telecom's director for corporate services Rahmat Djunaidi, however, denied that there were already talks with Telkom over the consolidation of Esia and Telkom Flexi. "There has not been any talks or plans leading to the consolidation. Currently, we're focusing on organic development of the company," he said.?

Muhammad Said Didu, secretary at the State-Owned Enterprises Ministry, said the ministry had yet to receive a formal letter from Telkom concerning its consolidation plan with Bakrie Telecom.? "The ministry is supporting Telkom's plan to improve and advance. As long as it's profitable, the ministry will support their plan," he said.?

Indonesian CDMA market has been considered too crowded, which is driving the moves.?Indonesia's CDMA telecommunication system offers low cost communication compared to the GSM (Global System for Mobile communication) system.