Image blurs on future of TV stations<\/p>\n
Tomorrow, the nation's television industry celebrates its 36th
\nanniversary in a glum mood, due to an unabated economic crisis.
\nThe Jakarta Post team of Ahmad Junaidi, Edith Hartanto, Sylvia
\nGratia M. Nirang, Kornelius Purba, Kosasih Deradjat and Dwi
\nAtmanta, and contributor Antariksawan Jusuf, look at the issue.<\/p>\n
JAKARTA (JP): The national television industry will receive a
\nbitter birthday present this year, and an unsettled economic
\ncrisis is the only thing to blame.<\/p>\n
Financial woes mark the darkest time for the country's
\n36-year-old television industry, which saw new channels booming
\nin the past decade.<\/p>\n
Since the advent of Rajawali Citra Televisi Indonesia (RCTI)
\nnine years ago, four other stations shot into orbit. Surya Citra
\nTelevisi (SCTV) was launched in 1990, followed by Televisi
\nPendidikan Indonesia (TPI) in 1991, ANteve in 1992 and Indosiar
\nin 1995.<\/p>\n
Both RCTI and SCTV, which moved its head office from Surabaya
\nto Jakarta in 1993, are under holding company PT Datacom Asia.<\/p>\n
The state television channel Televisi Republik Indonesia
\n(TVRI) was launched on Aug. 23, 1962, now recognized as National
\nTelevision Day. The first two private stations also celebrate
\ntheir anniversaries on this date.<\/p>\n
Except for TVRI, which is relatively safe, all five private
\nstations have been adopting drastic money and energy saving
\npolicies due to a substantial drop in advertisement revenue --
\nthe broadcast industry's lifeline.<\/p>\n
Various radical measures can easily be seen, from the reduced
\nhours of each station's airtime to the increasing hours of
\nreruns.<\/p>\n
Indosiar, for example, has cut the daily airtime from 18 hours
\nto 11 hours, except on weekends. With one hour of airtime costing
\nabout Rp 15 million, the station hopes to save Rp 105 million
\ndaily, according to the station spokesman Andreas Ambessa.<\/p>\n
During these bad times, the private stations can barely haul
\nthemselves into a profit-making position. As RCTI spokesman
\nEduard Depari put it, just to survive the uncertainties is what
\nlocal broadcast companies are hoping for.<\/p>\n
\"Forget ratings or profit seeking this time around. We, RCTI,
\nare simply trying to make sure we can broadcast our programs
\neveryday,\" he said.<\/p>\n
SCTV's Budi Darmawan said the station has seen its income from
\nads drop by 70 percent since the financial crisis swept across
\nSoutheast Asia in July last year. And it is as if it has reached
\na point of no return.<\/p>\n
The spotlight was turned onto SCTV recently when it carried
\nout massive layoffs. Budi said 100 out of the station's 1,200
\nemployees have asked for early retirement.<\/p>\n
\"There is no better solution for our troubled cash flow than
\ntrimming staff numbers. We are offering those who are willing to
\nresign a considerable amount of severance pay. Up to 12 times
\ntheir monthly salary,\" Budi said.<\/p>\n
\"It's sad ... but it will be worse for all of us if the staff
\nslash does not happen,\" he added.<\/p>\n
Budi said reducing airtime was worthwhile because an hour of
\nbroadcasting cost SCTV an average Rp 20 million (US$1,700). The
\nstation broadcasts 17 hours a day, three hours less than its
\nusual times.<\/p>\n
Like other stations, SCTV has stopped importing foreign
\nprograms, which, according to Budi, now cost triple their old
\nprice. Selected local products and reruns have replaced the
\nimported programs.<\/p>\n
He said a rerun allowed the station to save from Rp 12 million
\nto Rp 15 million.<\/p>\n
But despite the crisis, private stations refuse to sacrifice
\ntheir regular live broadcasts of European soccer leagues, saying
\nthey stake their pride on these weekend programs.<\/p>\n
RCTI is continuing with its Italian league coverage; SCTV with
\nthe English premiership broadcast every Saturday; ANteve turns to
\nSpanish league; and Indosiar takes Sunday's English league
\nmatches.<\/p>\n
Budi said the decision to continue with the soccer agenda was
\na difficult but unavoidable choice.<\/p>\n
\"... But we took it because it deals with our image,\" he said,
\nadding that SCTV would maintain live coverage of the NBA finals.<\/p>\n
How long can the floundering television industry stand the
\nfinancial crunch?<\/p>\n
Depari said RCTI, the country's largest station, would remain
\nsafe until December and would still take a brave stand for at
\nleast another six months if the situation worsened.<\/p>\n
\"If a big company estimates its endurance for that short a
\ntime, how about smaller ones?\" he asked.<\/p>\n
Budi said SCTV had anticipated such a gray future, although he
\nexpressed guarded optimism that such an assessment would be
\nwrong.<\/p>\n
\"In an extreme situation, we may only broadcast our favorite
\nnews program Liputan 6, or dismiss employees who show poor
\nrecords,\" Budi said.<\/p>\n
Mass communication expert M. Budyatna questioned the
\ngovernment's slow response to the looming crisis that threatens
\nthe existence of the national television industry.<\/p>\n
\"Foreign investment is the medicine for the ailing television
\nindustry. The government should lift regulations which ban
\nforeign investments in the media industry because they are not in
\nline with this globalization era,\" said Budyatna, who is from the
\nUniversity of Indonesia.<\/p>\n
But the director general of radio, television and film, Ishadi
\nSK, defended the government's sloppy move, saying that it had
\nlisted other priority sectors which needed immediate help.<\/p>\n
\"The television industry is not as crucial as banks in regard
\nto a direct affect on the public,\" he said.<\/p>\n
\"If we analogize them with the human body, a bank is the heart
\nand televisions are the feet and arms. No one can live without a
\nheart but you can survive without a foot or an arm.\"<\/p>\n
He said that if private television stations collapsed, the
\ngovernment could still rely on TVRI.<\/p>\n
But, he said, the government has not turned a blind eye to the
\nprivate stations' growing difficulties.<\/p>\n
\"We are working on a review of the broadcast law in response
\nto the escalating financial crisis. It will accommodate demands
\nfor sweeping reforms in our mass media,\" Ishadi said.<\/p>\n
He said that under the new law, the government would allow
\nforeign investment of up to 25 percent of the initial capital. He
\nrefused to go into details, saying the drawing up of the bill was
\nunderway.<\/p>\n
\"We hope we can submit it to the House of Representatives by
\nthe end of the year,\" he said. (team)<\/p>",
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