Opening up the media?<\/p>\n
As might have been expected, the new deregulatory steps
\nannounced by the government on Thursday have drawn a great deal
\nof comment. But no sector opened up to foreign investors by the
\nnew deregulation package has managed to stir up as much
\ncontroversy as that of the mass media. Little wonder. The media
\nhas been opened up to foreign participation by Government
\nRegulation No. 20\/1994 as if it is an industry with only economic
\nimplications.<\/p>\n
The Press Act of Indonesia, which is still valid at present,
\nis quite clear on this matter. It specifically prohibits foreign
\ncapital participation in this country's media. Article 13 of the
\nPress Act states that "...the capital of a Press Corporation
\nshall be wholly national, whereas all its founders and board
\nmembers shall be Indonesian citizens."<\/p>\n
Furthermore, Article 15 of the Ministry of Information
\nregulation Concerning Press Publication Operation Permits says,
\n"...press companies\/publishers and their respective publications
\nare not permitted to give or to receive aid in the form of
\ncapital or any other contribution in whatever form to\/from other
\nparties, including other press companies\/publishers which openly
\nor in a disguised form will cause a shift in ownership\/management
\nof the press companies\/publishers concerned, to the party of the
\ndonor."<\/p>\n
Thus, the law is unambiguous on two important points: First,
\nall press publications must be nationally owned in the sense that
\ntheir capital must be wholly owned by Indonesians. Second, aid
\nand "contributions" from other parties is allowed on the
\ncondition that it has the approval of the Minister of
\nInformation, who acts in consultation with the Press Council.<\/p>\n
Perhaps not surprisingly it was these two points which
\nMinister of Information Harmoko, in a statement to reporters on
\nFriday, chose to emphasize when asked to comment on the new
\nmeasures. Maintaining that he had not been consulted on the
\nmatter, Harmoko said the legal barriers against foreign capital
\nin the mass media were constructed to deter unwanted foreign
\nvalues from penetrating the national culture as well as
\npreventing Indonesian publications from being taken over by
\nforeigners.<\/p>\n
Opposition to opening the media to foreign money was also
\nvoiced loudly in the House of Representatives, where several
\nmembers voiced their concern over the prospect of foreign media
\nbarons influencing public opinion in Indonesia. On the other hand
\nthere are those who consider Thursday's deregulation measures a
\nmere public relations ploy as far as the media sector is
\nconcerned. After all, which foreign media barons would be willing
\nto invest millions of dollars in a business that runs the risk of
\nhaving its license revoked at any moment for publishing the wrong
\nkind of information?<\/p>\n
All in all, we agree with those who feel that a further
\nexplanation of the government's intentions are due with regard to
\nthe deregulation of foreign investments in the media business.
\nFor example, assuming that the new regulation is to be
\nmaintained, will the press publication licensing requirement be
\nrescinded to make investment more attractive? Or does the
\ngovernment have a specific sub-sector of the media in mind, such
\nas television? Or will the Press Act continue to stand as it is?<\/p>\n
In the face of all this, somehow, we cannot help but be
\nreminded of the remarks made by press baron Rupert Murdoch during
\nhis visit to Jakarta some months ago. Explaining to reporters
\nthat satellite television would spearhead his expansion into the
\nSoutheast Asian region, Murdoch maintained that "...all
\nregulations restricting the flow of information will change
\nbecause the market forces behind the current economic
\nglobalization trend cannot be stopped."<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/opening-up-the-media-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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