Government sets Internet subscription fees<\/p>\n
JAKARTA (JP): The Government has issued a new regulation which
\nsets the country's highest and lowest rates for Internet
\nsubscription fees.<\/p>\n
The latest newsletter of the state-owned international
\ntelecommunications operator PT Indosat stated that the regulation
\nis based on a decree of the Minister of Tourism, Post and
\nTelecommunications, which came into effect on July 30.<\/p>\n
According to the regulation, the monthly fees on Internet
\nsubscription for individuals using an analog telephone dialing
\nsystem should be set at a minimum of Rp 15,000 (US$6.43) and a
\nmaximum of Rp 18,000; and for individuals using a digital dialing
\nsystem at between Rp 75,000 and Rp 90,000.<\/p>\n
Subscribers using local area networks of computers with an
\nanalog telephone dialing system should be charged at between Rp
\n200,000 and Rp 240,000 per month and those with a digital dialing
\nsystem at between Rp 1 million and Rp 1.2 million.<\/p>\n
The standardization of subscription fees for Internet services
\nwas set due to the increasingly-sharp competition in the rapidly-
\nexpanding Internet sector.<\/p>\n
In 1995, the government introduced a regulation allowing just
\nsmall-scale enterprises run by young professionals to provide
\nInternet services. Big firms, therefore, do not have the
\nopportunity to enter the Internet service business. Since then,
\nat least 30 licenses have been issued to companies intending to
\nprovide Internet services but only 20 of them are currently in
\noperation.<\/p>\n
Commercial use of Internet in Indonesia began about two years
\nago. In facing the competition, a number of Internet providers
\nare offering lower subscription fees to attract more subscribers.
\nOn the other hand, many users are less careful to realize that
\nthe quality of services might be poor due to the low subscription
\nfees.<\/p>\n
The July regulation also sets the hourly tariffs for
\nindividual Internet subscription at between Rp 2,000 and Rp 2,400
\nfor the analog dialing system and at between Rp 8,000 and Rp
\n9,600 for the digital system. The rates for a local area network
\nare set at between Rp 10,000 and Rp 12,000 for the analog system
\nand at between Rp 30,000 and Rp 36,000 for the digital system.<\/p>\n
Tariffs for usage of over 200 hours per month are set at
\nbetween Rp 400,000 and Rp 480,000 for individual users (analog)
\nand between Rp 1.6 million and Rp 1.92 million (digital), and for
\nlocal area networks at between Rp 2 million and Rp 2.4 million
\n(analog) and at between Rp 6 million and Rp 7.2 million
\n(digital).<\/p>\n
According to the newsletter, the government has also
\nintroduced another regulation which eliminates import duties on
\nterminals for satellite-based telecommunications services.<\/p>\n
The Ministry of Finance has classified satellite-based
\ntelecommunications terminals as one type similar to mobile
\ncellular telecommunications handsets. Thus, beginning April this
\nyear, any terminal for International Maritime Satellite services
\nis exempted from import duties.<\/p>\n
The government previously charged a 25 percent import duty on
\nsuch terminals besides a 10 percent value added tax which is now
\nstill valid. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-sets-internet-subscription-fees-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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