Govt raises local-call charges<\/p>\n
JAKARTA (JP): The cost of local telephone calls will rise 4.54
\npercent tomorrow but it will be cheaper to phone long distance or
\n209 other countries.<\/p>\n
Secretary-General of the Ministry of Tourism, Post and
\nTelecommunications Jonathan L. Parapak told a press conference
\nyesterday that the state-owned telecommunications provider PT
\nTelkom would raise local phone charges from Rp 110 (US$0.04) to
\nRp 115 a pulse (every 1.5, two or three minutes, depending on
\ndistances and time periods).<\/p>\n
\"However, long-distance call charges will be reduced by 1.82
\npercent from Rp 110 to Rp 108 a pulse, and international-call
\nrates to 209 nations will also be reduced,\" Parapak said.<\/p>\n
But charges on international calls to 22 other countries would
\nrise because of the rupiah's depreciation against the U.S.
\ndollar, he said.<\/p>\n
Long-distance calls cost between Rp 110 and Rp 2,062.5 a
\nminute depending on zone divisions and time periods.<\/p>\n
Parapak said that air-time charges for cellular
\ntelecommunications services would also be reduced by 1.82
\npercent, from Rp 275 to Rp 270 a minute.<\/p>\n
Telephone installation fees, he said, would be reduced by
\nbetween 5 percent and 28.13 percent.<\/p>\n
Installation fees for business subscribers, which now range
\nfrom Rp 200,000 to Rp 900,000 depending on the location, will be
\ncut by a range of 5 percent to 11.2 percent.<\/p>\n
Installation fees for households, which now vary from Rp
\n100,000 to Rp 700,000, will be cut by a range of 15 percent to
\n17.5 percent.<\/p>\n
The installation fees for subscribers with social missions,
\nwhich now range from Rp 80,000 to Rp 560,000, will be cut by a
\nrange of 25 percent to 28.13 percent.<\/p>\n
Parapak recalled Telkom's statement in its prospectus for its
\ninitial public offering in October last year which said that it
\nwould review tariffs every year.<\/p>\n
\"There are two factors considered when setting the maximum
\ntariff adjustment (price cap) each year: The inflation rate minus
\nthe X factor. The X factor is decided by the government.<\/p>\n
\"Because the inflation rate for 1996 was 8.64 percent (similar
\nto 1995's inflation) and the X factor is 6, the maximum
\nadjustment rate for telecommunications charges in 1997 is 2.64
\npercent,\" he said.<\/p>\n
Only last month, the government pledged not to raise local,
\nlong-distance or cellular call charges.<\/p>\n
The Indonesian Consumers Foundation has strongly objected to
\nthe 4.54 percent increase in local-call charges.<\/p>\n
\"I don't understand why this raise should be made. The
\ngovernment raised charges at the expense of the general public
\nwithout any consultation with the House of Representatives,\" the
\nfoundation's executive chairwoman, Tini Hadad, told The Jakarta
\nPost.<\/p>\n
She said it was unclear why tariffs for local calls had
\nincreased.<\/p>\n
\"This is also unexpected. The government or Telkom should have
\ngiven a transition period for the introduction of higher
\ntariffs,\" she said.<\/p>\n
She said that, since Telkom had gained handsome profits with
\nthe existing local-call tariffs, it should not have increased
\nthem.<\/p>\n
\"I'm sure there are many families who pay Telkom more than Rp
\n500,000 in monthly telephone bills. Hence, even household
\nsubscribers do not need any subsidies,\" Mrs. Hadad said.<\/p>\n
She also criticized the lack of transparency with which the
\ntariffs were determined.<\/p>\n
Telkom said the number of telephone lines in service increased
\nthis year by 36.27 percent to 2.13 million lines in Greater
\nJakarta and East Java. The number of installed telephone lines in
\nother areas increased 26.79 percent to 1.79 million.<\/p>\n
Telkom said its number of subscribers increased 32.18 percent
\nto 3.79 million.<\/p>\n
Minister of Tourism, Post and Telecommunications Joop Ave,
\nTelkom president Asman A. Nasution and Indosat president Tjahjono
\nSoerjodibroto said the adjustment of telephone tariffs would not
\naffect the financial soundness of Indosat and Telkom next year.<\/p>\n
\"It's negligible,\" Joop said. (icn)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-raises-local-call-charges-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }