1.         INTRODUCTION

1.1       The sixth BIMP-EAGA Working Group Meeting on Telecommunications, held on 24-27
            August 1998 in Ujung Pandang, Indonesia was attended by representative from Brunei
            Darussalam, Malaysia, Indonesia and the Philippines. It was noted that Malaysia was unable
            to send any representative from their government. The list of delegates appears as Annex A.

1.2       The Brunei Darussalam Delegation was headed by Mr Buntar bin Osman, Director of
            Telecommunications; the Indonesia Delegation by Mr. Djamhari Sirat, Senior Assistant of
            Telecommunication to the Director General of Post and Telecommunication and the
            Philippines Delegation by Mr Geoffery L. Rodriguez, Regional Director of the Department
            of Transport and Communications.

2.         WELCOMING ADDRESS BY THE HOST COUNTRY

2.1       The meeting was officiated by Mr. Sasmito Dirdjo, the Director General of Post
            and Telecommunications, Indonesia. In his speech, he welcomed delegates from the
            other members of the BLIMP-EGA. He highlighted that in the situation of economic crisis
            faced by all members, the Working Group should look for possibilities to create business
            opportunities. He also pointed out that e-commerce was an important topic to this W.T.
            towards free market era. The full text of his statement appears as Annex B.

3.         ADOPTION OF THE AGENDA AND MEETING ARRANGEMENT

3.1       The Meeting adopted the agenda and the meeting arrangement which appears in Annex C.

4.         APPOINTMENT OF THE DRAFTING COMMITTEE

4.1       The members of the Drafting Committee were appointed by their respective Heads of
            Delegation. The List of the Drafting committee Members appears as Annex D.

5.         REPORT OF THE CHAIRMAN ON THE OUTCOME OF THE 7th SOM

            The Head of the Delegation of Brunei Darussalam in his capacity as the Chairman of the
            BIMP-EAGA Working Group On Telecommunications (W.T.) reported to the Meeting the
            outcome of the 7th SOM which was held in Balikpapan, Kalimantan, Indonesia on 27-28
            October 1997. The report appears in Annex E. The ensuing discussion was as follows :

                     5.1      Broadcasting

  5.1.1       The 7th SOM instructed that issues concerning broadcasting be referred to
                 the ASEAN umbrella group since ASEAN had already established the
                 ASEAN Broadcasting Corporation and ASEAN Information Ministres’
                 Meeting to deal with broadcasting issues. The 7th SOM further directed
                 the BIMP-EAGA WGT to monitor and keep abreast the development on
                 convergence between telecommunications, broadcasting and information
                 technology.

  5.1.2       The Meeting took note of the instruction and direction given by the 7th
                 SOM.

          5.2       Electronic Commerce and Electronic Data Interchange

  5.2.1       The Meeting took note the direction given by the 7th SOM that the W.T. to
                 "look into trade facilitating WGMs such as electronic commerce and
                 Electronic Data Interchange (EDI).

  5.2.2       The Meeting noted that electronic commerce and EDI were being actively
                 pursed by APEC and WTO be monitored from time to time by all
                 members of the W.T. and that any significant development would be
                 reported to the W.T. and SOM.

          5.3       BIMP-EAGA Homepage

  5.3.1       The 7th SOM suggested that the BIMP-EAGA homepage be made
                 semi-interactive, particularly the aspects dealing with business and
                 investment and that the W.T. to ordained with the EABC.

  5.3.2       In response to this suggestion, Brunei Darussalam took the initiative of
                 convening two meeting with the EABC, the full report of which was
                 presented to the Meeting. The report appears in Annex F.

  5.3.3       The Meeting agreed that this report be used as the W.T.’s response to the
                 8th SOM.

          5.4       Appointment of Country Information Coordinators (CIC’s)

  5.4.1       The 7th SOM accepted the W.T.’s suggestion to appoint Country
                 Information Coordinators (CICs) but decided that "Whoever is ready could
                 begin and other members would implement when they are ready". But
                 questions remained as to who the CICs were

  5.4.2       In this respect, Brunei Darussalam informed the Meeting that the Senior
                 Official of Brunei Darussalam has officially endorsed the appointment of the
                 Ministry Of Communications as the CIC for Brunei Darussalam.

 

  5.4.3       The Philippines also announced that the Mindanao Economic Development
                 Council (MEDCO) has been appointed as the CIC. Also, Indonesia
                 announced that DG POSTEL was the CIC.

  5.4.4       Since Malaysia was not represented by their government, the Meeting
                 agreed that the Chairman of the Working Group would write to Malaysia
                 to ask who their CIC would be.

          5.5       BIMP-EAGA Growth Fund

  5.5.1       Brunei Darussalam presented an information paper on BIMP-EAGA
                 Growth Fund which appears in Annex G.

  5.5.2       The Meeting took more the establishment of the BIMP-EAGA Growth
                 Fund has been hampered by the lack of response from potential core
                 investors especially from the BIMP-EAGA region. On the brighter side
                 however, the Meeting was informed by the EABC that the Working group
                 on Capital Formation & Financial Services has relaxed the requirement for
                 endorsement from two (2) core investors to only one. Further, the EABC
                 reported that during the third quarter of 1997, Land Bank of the
                 Philippines, Development Bank of the philippines and Suria Capital
                 Holdings (M) Bhd signed an MOU for the establishment of an EAGA
                 Growth Fund.

  5.5.3       Brunei Darussalam suggested that the WGT could identify viable projects
                 that could be funded by the Growth Fund and for these projects to be
                 submitted to the BIMP-EAGA Working Group on Capital Formation and
                 Financial Services (CF & FS)

  5.5.4       The Meeting agreed to the suggestion as contained in item 5.5.3

          5.6       BIMP-EAGA Institutional Mechanism & Processes

  5.6.1       Brunei Darussalam presented a paper which appears in Annex H outlining
                 the recommendation from the BIMP-EAGA Task Force on Institutional
                 Mechanism and Processes. The Task Force was formed during the 5th
                 SOM to address issues affecting the efficiency and effectiveness of existing
                 institutional mechanisms and organizational processe in realizing the goals of
                 the BIMP-EAGE. The Task Force’s report was agreed by the 7the SOM.
                 It was further recommended that the report be used as the ‘Standard
                 Operating Procedure’ covering every aspect of tasks and responsibilities of
                 all Working Groups.

  5.6.2       The Meeting agreed to implement the recommendation.

                    5.7       Performance Indicators For EAGA Cooperation

  5.7.1       Brunei Darussalam presented a paper on performance indicators on
                 telecommunications which appears in Annex 1.

  5.7.2       The proposal to establish a set of performance indicators was introduced in
                 the 6th SOM with the main objective of showing the achevements of
                 EAGA and to waht extent the objectives of this sub-regional cooperation
                 efforts was moving forward. The SOM instructed all Working Groups to
                 come up with detailed indicators that would reflect the specifications of the
                 Working Group itself including the measurement of the Working Groups’s
                 effectiveness in achieving its targeted activities and projects.

  5.7.3       After lengthy deliberations, the meeting agreed on the following indicators :

       a)      Usage rate as a result of reduction of tariffs
       b)      Number of Cellular Mobile Telephone Subscribers & Density
       c)      Coverage of GSM Roaming
       d)      Number of Fixed Telephone Lines & Density
       e)      Growth rate of new subscribers business residential
       f)       Growth in Internet subscribers
       g)      Accessibility such as number of public phones or public calling
                 offices
       h)      Number of Value Added Services

             5.7.4      The Meeting agreed that sufficient data each of the above indicators be collected
                           and compiled by the Head of Delegation of each country. The information
                           collected would be reported to the 8th SOM by the Chairman of the WGT and at
                           the same time posted on the BIMP-EAGE Homepage. As such, the information
                           shall be made available before the end of 1998. It was further acknowledge that
                           close cooperation by the private sector in providing the necessary information was
                           of utmost importance.

                     6.         RESENTATION OF REPORT OF THE PRIVATE SECTORS’ MEETING

                     6.1       The report of the private sector meeting held on 24 August 1998 was presented by its chairman
                                 Mr Samsriyono Nugroho of PT INDOSAT, Indonesia. The full text of the report appears as Annex L.

                    7.          DISCUSSION AND CONSIDERATION OF THE REPORT OF THE PRIVATE SECTORS’
                                  MEETING

7.1        The Meeting noted that a second round tariff reduce was not justified under the current
             economic situation, consideration that among other things :

a)      Depreciation of national currencies has effextively reduced the
         collection rates.

b)      Previous tariff reductions has not stimulated traffic growth.

7.2        The Meeting noted that harmonizing the tariff reduction should be considered by theprivate
             sector to reflect the spirit of coopertion among BIMP-EAGA.

7.3        The Meeting noted that seven (7) GSM operator snow cover more than Fifty cities and
             town within BIMP-EAGA.

                    7.4        The Meeting accepted the report of the private sector.

8.           NETWORK OF INFORMATION

8.1        The Meeting noted a paper by the chairman of the Sub-Working Group on Network
             Information Infrastructure whichh appears in Annex 1.

8.2        To further address this issue, the Meeting agreed to convence an information joint meeting
             between the Country Information Coordinators (CICs), Internet Service Providers (ISPs)
             and the EABC to discuss in details the mechanics of information flow and working
             relationship among the CICs-ISPs, WG-CICs, and CIC-EABC with regards to the
             development of the Network of information. The full text of the report of this informa
             meeting appears in Annex M.

8.3        Among others, the report recommended the following for the Meeting’s decision.

a.        To convene a joint meeting among the CICs. ISPs and the four
           carriers to discuss, among others, the project implementation plan.
           The said meeting shall be conducted this coming October prior to
           the working group meeting and 8th SOM.

b.        To present the concept and implementation plan of the Network
           of Information in the agenda of all working group meeting. The
           CIC and ISP of the host country to be supported by the four
           carriers will handle the presentation. The WGT chairman to
           communicate with the lead countries of the 12 other working
           groups.

c.        The Senior Official of Brunei Darussalam to communicate with the
           rest of the Senior Officials on the necessity of endorsing the CICs
           and ISPs. The endorsement will put pressure on the 13 working
           group to commit themselves to actively participate in the project
           and to facilitate the ISPs to proceed. The WGT chairman to
           communicate with the Senior Official of Brunei Darussalam.

d.        To request information from Malaysia on the appointment to CIC.

8.4       After lengthy deliberation, the Meeting agreed to adopt the above-mentioned
            recommendations of the informal meeting.

8.5       On item no 8.3 a, inasmuch as the Sub-Working Group on Network Information
            Infrastructure which is composed of ISPs has completed its task, the said sub-working
            group was deemed dissolved. Relative to this, the Meeting agreed to create a new Task
            Force composed of CICs, ISPs, EABC and the Four carrires to look into the
            implementation mechanism of the project. The terms of reference of the new task forcewill
            be drafted during the joint meeting.

8.6       The Meeting decided that the Task Force would convene its first meeting on the first week
           of October 1998 in Indonesia and would be hosted by PT Telkom and PT Indosat. PT
           Indosat would communicate the final date of the meeting.

8.7       The Philippines accepted the task as Chairman of the Force.

8.8       In addition, the Meeting recommended that the Task Force would also cover the discussion
            on electronic commerce and information highway.

9.         ASSESSMENT OF THE WORKING GROUP ON TELECOMMUNICATIONS

9.1       The Meeting updated the contents of "Assessment of the Working Group on
            Telecommunication". The updated version appears as Annex N.

10.       EAGA BANNER PROJECTS WHICH ARE DOABLE WITHIN THE NEXT
            TWO YEARS.

10.1     The Meeting noted the EAGA Banner Projects which are considered doable within the next
            two (2) years are as follows :

a.      Trans-Borneo Land-Based Fiber Optic Cable System project
b.      Tariff reduction Phase II within the BIMP-EAGA region
c.      GSM, AMPS and PCN Roaming
d.      EAGA Regional System using satellite and cable facilities
e.      BIMP-EAGA Network of Information

11.       ANY OTHER BUSINESS

11.1     Brunei Darussalam presented a paper entitled `Strategic Direction For the Working Group
            On Telecommunication’ which appears in Annex K. The paper was intended to initiate
            discussion and brinstroming wheater it was necessay to reengineer the working structure of
            the WGT sa as it could look forward more strategically, more focussed and committed in
            pushing proposals into concrete action-plan and successful implementation.

11.2     The Meeting also noted a joint paper by JTB, TM, INDOSAT and PLDT on proposed
            strategic direction. The paper indicated the need for the WGT to liaise with each of the other
           12 working groups to determine and address the telecommunications requirements of the
            business entities. The paper appears in Annex O.

11.3     Following the disussion on the above issues, the Meeting agreed that each member country
            shall provide inputs by correspondence to the Chairman of the WGT for compilation and
            consolidation and likewise prepare a draft paper on the WGT’s Strategic Direction for
            furher consideration by members of the WGT and for presentation in the next meeting.

11.4     Globe Telecom of the Philippines together with DST Communication Sdn Bhd of Brunei
            Darussalam, Telkomsel and Satelindo of Indonesia and Maxis of Malaysia have successfully
            demonstrated the GSM roaming in BIMP-EAGA. (Refer to Annex R)

11.5     The Meeting realized that the Y2K (Mellenium Bug) was an important issue which has to be
            addressed seriously. All the particioants were encouraged to share information regarding
            thier respective Y2K activities on thier website. Furthermore , the Meeting agreed for each
            member country to present a peper in the next meeting on the activities undertaken relative
            Y2K.

11.6     The Meeting noted the invitation of PT Telkom to visit the test house and to attend the
            E-Commerce exhibition and seminar in Bandung, Indonesia on October6-9, 1998. (Refer
            to Annex O). The Meeting alsonoted the invitation of PT INTI to visit their Factory and to
            have System/Product Detail presentations in Bandung.

                    12.       NEXT MEETING

12.1     In line with the Working Group’s current practise, the next meeting shall be held by the
            middle of 1999 and to be hosted by Malaysia. The Chairman would communicate this
            matter to Malaysia for their confirmation.

                    13.       REVIEW AND ADOPTION OF AGREED MINUTES

13.1     The Meeting considered and adopted the Agreed Minutes of the 6th Working Group
            Meeting on Telecommunications.

                    14.       CLOSING OF THE MEETING

14.1     The representative of Brunei Darussalam, Malaysia and Philippines expressed their sincere
            appreciation to the government of Indonesia for the warm hospitality accorded to them.