Press entering dark tunnel: Industry executive<\/p>\n
JAKARTA (JP): Skyrocketing prices of newsprint and the
\ncontinuing plunge of the rupiah are hurtling the press industry
\ninto a dark tunnel with no clear light at the end of it,
\naccording to an industry executive.<\/p>\n
S. Leo Batubara, secretary-general of the Association of
\nNewspaper Publishers (SPS), told The Jakarta Post yesterday that
\nmost print media were operating on a subsistence management level
\nwith the mere aim of surviving the monetary crisis.<\/p>\n
\"Speaking frankly, most print media have taken to acting the
\nway a stall owner manages a small business, that is only for the
\nsake of surviving.<\/p>\n
\"They (the press) work daily with the aim of only getting
\nenough to help buy more newsprint and, more importantly, to
\nmaintain their idealism,\" he said after announcing an agreement
\non newsprint prices with producer PT Aspex Paper, the country's
\nlargest newsprint producer.<\/p>\n
Batubara, cofounder and former general manager of Suara Karya
\ndaily, said most newspapers were still publishing daily, however
\nnot for commercial reasons but because of their sense of idealism
\nand fighting spirit.<\/p>\n
\"Seen from the business point of view, the press industry is
\ndying because of the skyrocketing price of newsprint and the
\ndecreasing number of ads. However, it (the press) has idealism.
\nThe press still have distinguished and commendable nonbusiness
\nvalues and that is why most newspapers are determined to continue
\nappearing,\" he said.<\/p>\n
He added that he does not expect the press industry to show
\nany sign of progress unless the national economy recovers.<\/p>\n
Almost all newspapers, magazines and tabloids have reduced the
\nnumber of pages and several publications like the Indonesian
\nTimes daily and Tiras weekly have stopped publication.<\/p>\n
Some, like the Terbit and Berita Buana dailies, have opted to
\nchange their format from a nine-column to tabloid.<\/p>\n
The monetary crisis, which has seen a free-fall in the value
\nof the rupiah against the U.S dollar, has made newsprint
\nexpensive, and combined with scant advertising, is quickly
\ndriving the press industry into financial ruin.<\/p>\n
It is estimated that two-thirds of the country's 286
\nnewspapers and magazines are teetering on the brink of
\nbankruptcy.<\/p>\n
The rupiah's depreciation has seen the newsprint price rocket
\nfrom Rp 1,254 (8.5 U.s. cents) per kilogram in January 1997 to
\nthe most recent US$505 per metric ton (Rp 7,450 per kilogram)
\nsince January this year.<\/p>\n
Roesilah Kasiyanto of SPS, who accompanied Batubara at the
\nsigning ceremony of the agreement, said a new arrangement had
\nbeen worked out for the price of newsprint for the next three
\nmonth with PT Aspex Paper at US$505 per ton under a barter
\nsystem.<\/p>\n
The Korean company in which tycoon Mohamad \"Bob\" Hasan is a
\nmajor stockholder supplies about half the domestic demand for
\nnewsprint.<\/p>\n
\"The agreement stipulates that for newsprint produced by
\ndouble and triple machines, publishers can pay $485 per metric
\nton, excluding value added tax and income tax, but they must
\nprovide advertising space worth $20 for every metric ton
\npurchased for Aspex's Korindo group's products.<\/p>\n
\"For newsprint produced by single machines, publishers are
\nobliged to pay $450 metric tons and, in compensation to PT Aspex,
\nprovide advertising space worth $55 for each metric ton for the
\ngroup's products,\" she said.<\/p>\n
All the prices would use the average rupiah-dollar conversion
\nrate of the past week prior to the transaction.<\/p>\n
The Korindo Group produces various products such as footwear,
\ncontainers and plywood. (rms)<\/p>",
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