Indonesian TV cable industry gets much-awaited boost<\/p>\n
By Antariksawan Jusuf<\/p>\n
JAKARTA (JP): At this lethargic time when every economic actor
\nis playing a wait-and-see game, Indonesia's cable industry got a
\nmuch-awaited boost.<\/p>\n
First, a truce has been signaled between Hong Kong-based Star
\nTV and Indonesia's main satellite and pay-tv Direct-To-Home (DTH)
\noperator Indovision.<\/p>\n
After months of lawsuits, the two have finally reached an
\nagreement. In its DTH service for July 2000, Indovision offers
\nnew packages which include most of the Star channels which were
\ncut in December 1998.<\/p>\n
Star TV, owner of 45 percent stake in Indovision, has a 10-
\nyear management agreement with the country's only DTH operator
\nwhich claims to have 27,000 subscribers.<\/p>\n
Star had earlier opposed the migration from Palapa C2 to
\nIndovision's parent company Datakom's S-band Cakrawarta-1
\nsatellite. This dispute led to the axing of nine channels in
\n1998, including Star Movies, Star World, ESPN\/Star Sports, and
\nChannel [V]. Later on the two parties filed law suits against
\neach other. Indovision sued in an Indonesian court, while STAR TV
\nwent to a Singapore court. The Indonesian court said it has no
\njurisdiction over the case. STAR TV won the case in Singapore.<\/p>\n
Second, Lippo group's PT Broadband Multimedia, which runs the
\nmultimedia firm Kabelvision, is to inject fresh money to expand
\nits massive project to develop pay-per-view, video-on-demand, e-
\ncommerce and to become a content provider of programs with an
\nIndonesian identity. It will also introduce, for the first time,
\nlocal television commercials in pay-television, which under the
\ncurrent broadcast law number 24\/1997 is still forbidden. However,
\nthere is currently no government institution having authority to
\ndeal with the issue. The information ministry, which used to deal
\nwith issues related to the industry, was dissolved by President
\nGus Dur in 1999.<\/p>\n
A source at Kabelvision said it has earmarked US$80 million,
\nwhich it raised from a recent international roadshow, for the
\nexpansion.<\/p>\n
Kabelvision has also secured the pay-tv rights in Indonesia
\nfor the upcoming Sydney Olympics. It plans to screen Olympic
\nprogramming on six channels.<\/p>\n
After the four-yearly event is over, Kabelvision will use the
\nchannels for programming with an Indonesian identity, be it
\nkids', women's or educational channels with of Indonesian program
\ninput or imported programs dubbed into the Indonesian language.<\/p>\n
Included in the strong management lineup of Kabelvision is Jim
\nGuy Tucker, a former Arkansas governor who has 17 years
\nexperience in the U.S. cable business, and Jonathan L. Parapak,
\nformer Indosat president director.<\/p>\n
Kabelvision's major shareholder is Hongkong-based AcrossAsia
\nMultimedia Ltd. which owns 57.62 percent of the company. Four
\nother Lippo subsidiaries- PT Reksa Puspita Karya, PT Mulia Sindo
\nMitra Adijaya, PT Langgeng Gita Muliatama and PT Utama Sejati
\nPrima Indah - respectively own 16.69 percent, 4.93 percent, 1.89
\npercent and 1.89 percent.<\/p>\n
PT Datakom Asia, which is also the holding company of
\nIndovision, has 13.31 percent in it with the remaining 3.67
\npercent being held by the public. PT Broadband Multimedia,
\nformerly known as PT Tanjung Bangun Semesta, is listed on the
\ncountry's second market, the Surabaya Stock Exchange, in East
\nJava.<\/p>\n
AcrossAsia Multimedia Ltd. was itself listed in Hongkong last
\nmonth with an opening market capitalization of 2.13 billion
\ndollars.<\/p>\n
\"We are optimistic of reaching a total target of 450,000
\nsubscribers by the year 2002,\" said Kabelvision Corporate
\nSecretary Parmagita.<\/p>\n
She said Kabelvision expects to bring in 5,000 new subscribers
\nevery month.<\/p>\n
Currently it claims to have 119,140 home pass subscribers,
\n22,000 individual family subscribers, 250 SMATV subscribers and
\n3,000 signed-up hotel rooms.<\/p>\n
Two other cable operators, PT Indonusa Telemedia (Indonusa)
\nand PT Multimedia Nusantara (Metra), seem to be also playing a
\nwait-and-see game.<\/p>\n
\"For the time being, we holding off our expansion projects
\nuntil the end of the year,\" said Indonusa General Manager
\nSrihanto Nugroho. The massive expansion of the cable operator, 45
\npercent of whose shares are held by PT Telkom, is expected to
\ntake place in 2001 when all of Telkom's fiber optic cables are in
\nplace.<\/p>\n
Indonusa claims to have 200 subscribers and expects to have
\n2,000 next year.<\/p>\n
Meanwhile, Metra, which also operates in East Java's Surabaya
\nand in Bali, claims to have 5,041 outlets, including 259
\nindividual family homes, and 40 hotels.<\/p>\n
\"The market is still wide open, but it all depends on the
\nmacroeconomic situation,\" said Metra spokesman Lukman Adjam.<\/p>",
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