Big chances in telecom industry<\/p>\n
The Ministry of Communications' Post and Telecommunication's
\nDirector General Sasmito Dirdjo supports the notion that
\ntelecommunications is one of the industry survivors in
\nIndonesia's crisis. Telecommunications, he said, were once
\nconsidered a secondary need but are now a vital one. Another
\nreason for their weathering the crisis is that most of the
\nbiggest telecommunications' companies are strong state-owned
\ncompanies.<\/p>\n
"We are finalizing regulations which consist of the law
\nitself, presidential regulations, ministerial regulations,
\nministerial decrees, directorate general decrees, etc.," said
\nSasmito. The Directorate General of Post and Telecommunications
\nis determined to finalize all regulations, the first changes
\nsince 1989, this year.<\/p>\n
The changes are significant. For example, the government
\nformerly gave monopoly rights (known as exclusivity rights) to PT
\nTelkom and PT Indosat, which both still retain. "Recently, we
\nheard that the government has talked about privatization," said
\nSasmito.<\/p>\n
Theoretically, privatization is good as long as it is done
\nright, Sasmito said.<\/p>\n
Regulations are expected to bar against monopolies and be
\nflexible through permits given based on good conditions.<\/p>\n
"It is not easy as we have been in a monopoly era for a long
\ntime. It seems attached to our lives," said Sasmito.<\/p>\n
In one year, he has raised tariffs twice. "The situation made
\nme do that. We need to realize that out of 210 million people,
\nonly a small amount use telephone services. But, that does not
\nmake us care less. This is a side that we must see."<\/p>\n
"If we raise the tariffs, the decision is made not without
\ndifficulty," Sasmito said.<\/p>\n
Compared to tariffs abroad, domestic tariffs are relatively
\ncheap but seem expensive due to the crisis. Sasmito has promised
\nto continue observing this problem, adding that should the U.S.
\ndollar reach Rp 5,000, domestic tariffs may decrease.<\/p>\n
Telkom competes in the domestic market and Indosat in the
\noverseas market. They have their own markets but they will have
\nto compete in the same market in the future.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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