SK Planet, XL Axiata set up joint venture in Indonesia

SK Planet, a unit under SK Telecom, will be setting up a joint venture with the Indonesian mobile operator to offer mobile and online services such as e-commerce and navigation.

SK Planet and PT XL Axiata will be setting up a joint venture in Indonesia to offer mobile and online services as they look to capitalize on the country's fast-growing population of mobile and Web users.

In a report by Yonhap News Agency Tuesday, SK Planet, an affiliate unit under SK Telecom, has agreed to set up the joint venture with Indonesian mobile operator XL Axiata. Unnamed sources said both parties will each invest US$9.15 million in the new entity, it added.

While the joint venture has been agreed on, they are still deciding on the scope of the business, the sources said. However, it is expected to be offering navigation services, online shopping, and online auction, they added.

This is not the first time SK Planet has ventured into Indonesia. The report noted the company partnered Telkom Indonesia to provide music and video streaming via its joint venture PT MelOn Indonesia.