Several telecommunication stakeholders on Sunday rejected the government\u2019s plan to ease the negative investment list next month, particularly on ownership of telecom towers.<\/p>\n
Southeast Asia\u2019s largest telecom, Singapore Telecommunications, may be one of the foreign investors to take advantage of the change, possibly as a strategic partner in tower operator PT Dayamitra Telekomunikasi (Mitratel), a unit of PT Telekomunikasi Indonesia.<\/p>\n
Maswidyantoro, a spokesman for the Indonesian Telecommunication Society (Mastel), a non-governmental organization focused on the telecom sector whose membership includes Telkom, urged the government to cancel the plan.<\/p>\n
\u201cIt shows that the government is not consistent in making policy,\u201d he said. \u201cIt will kill the local business community at a time when the country\u2019s financial institutions have started to become confident [to lend to it], but compared to foreign players, especially Singapore, we can\u2019t win.\u201d<\/p>\n
The list, also known as the DNI, limits foreign ownership of companies in sensitive sectors<\/p>\n
Gatot S Dewabroto, spokesman for the Ministry of Communication and Information Technology, said it is unwise to open the sector for overseas investors.<\/p>\n
\u201cIt\u2019s not right if foreign investors control both upstream and downstream sectors of the industry,\u201d Gatot said. \u201cWe need to give local business a chance to benefit from the sector and not give it to international players.<\/p>\n
\u201cOne of the most crucial issues ... is the social issue, like what happened in Bali,\u201d he added.<\/p>\n
From 2008 to 2009, there was a dispute between the island\u2019s Badung district with telecommunication operators and tower providers over building permits that caused some of the towers to be brought down by locals, costing operators billions of rupiah.<\/p>\n
\u201cThis is what happened when we still prohibited it. What happens if we open it?\u201d Gatot said.<\/p>\n
Azhar Lubis, deputy chairman for investment climate development of the Investment Coordinating Board (BKPM), acknowledged that the telecommunications sector is a more sensitive industry to liberalize than logistics, hospitals and creative industries.<\/p>\n
\u201cWe need to talk extensively about it, what policy it would lead us to and discuss details of its requirements,\u201d Azhar said.<\/p>\n
Under a 2007 presidential decree, the telecommunication network can have up to 49 percent foreign ownership. However, the decree does not specifically refer to towers, resulting in multiple interpretations.<\/p>\n
A Communication Ministry decree in 2008 prohibited foreign ownership. It was backed by two the home affairs and the public works ministries as well as the BKPM.<\/p>\n
Gatot said his ministry would follow any direction on the matter from the Coordinating Ministry for the Economy. \u201cBut for now our stance is still clear, that we cannot accept this,\u201d he added.<\/p>\n
Sofyan Wanandi, chairman of the Indonesian Employers Association (Apindo), also rejected the liberalization plan.<\/p>\n
\u201cWhy should we give it all to the foreigners?\u201d Sofyan said. \u201cAre we going to be a nation of helpers? Constructing towers and operating them are not difficult for us, financially or technically.\u201d<\/p>\n
Meanwhile, Airlangga Hartarto, chairman of the House of Representatives Commission VI, which oversees the investment sector, said the government should focus on local content rather than ownership.<\/p>\n
\u201cI\u2019m not opposed to the plan. I think the telecommunication sector is in huge need of capital, and local companies may not be able to fulfill it,\u201d he said, but \u201clocal employees and local products should be the first option.\u201d<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/foreign-investor-proposal-angers-indonesian-telecom-players-1266822239", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }