'TVRI': A television station in waiting<\/p>\n
By Antariksawan Jusuf<\/p>\n
JAKARTA (JP): It is a classic dilemma: how can the state
\ntelevision station TVRI survive its role as a broadcaster serving
\nthe people and, at the same time, be financially independent?<\/p>\n
Minister of Information Muhammad Yunus, formerly known as
\nYunus Yosfiah, has mooted an idea of allowing the station to air
\ncommercials, saying the station should be run professionally.<\/p>\n
But will it work?<\/p>\n
Since the government banned commercials on TVRI 17 years ago,
\nit almost totally fails to attract viewers. In areas where
\nIndonesians have access to both TVRI and commercial stations,
\nmost watch TVRI programs only obligatorily relayed on commercial
\nstations, such as the national news, world news or special
\nreports.<\/p>\n
TVRI has been a target of criticism for failing to serve as a
\npublic broadcaster that could walk the fine line between
\nproviding a public service and the need to entertain.<\/p>\n
Instead, it carries much of the baggage associated with the
\nruling government. Many of its programs, which unsurprisingly
\ngain low ratings, are not attractive. As far as news and current
\naffairs programs are concerned, it fails to gain respect from the
\npublic because of its tendency of having one-sided reports.<\/p>\n
Under the 1997 Broadcast Law, TVRI's income is earned from TV-
\nset owners paying subscription fees and contributions from
\nprivate television stations' advertising revenues, as well as a
\nstate budget.<\/p>\n
Commercial stations, which first went to air in 1989, must
\ngive 12.5 percent of their advertising revenue to TVRI.<\/p>\n
However, the regulation does not work. The five private
\nstations owe TVRI Rp 118.58 billion, according to Yunus. RCTI's
\ndebt is Rp 33.08 billion, TPI Rp 15.02 billion, SCTV Rp 31.91
\nbillion, ANteve Rp 15.17 billion and Indosiar Rp 23.4 billion.<\/p>\n
The minister said the broadcast law should be merged with the
\npress law to become one mass media law. Before the new law, both
\nprivate and state stations should be equal, he said.<\/p>\n
Accordingly, TVRI should also stop collecting subscription
\nfees from TV owners.<\/p>\n
Set up in 1962 to broadcast the Asian Games IV held in
\nJakarta, TVRI is currently run under a foundation. A 1963
\npresidential decree states TVRI's source of income includes a
\nstate budget, public fees and other sources, such as advertising.<\/p>\n
In 1981, the government decided to freeze commercials on TVRI
\nin an effort to reduce consumerism and the negative impact of
\ncommercials. The station relied totally on its state budget and
\nsubscription fees from TV set owners.<\/p>\n
Even though TVRI is allowed to air commercials, this is not
\neasy to do. As a public television station, it should find a way
\nto minimize the negative impact of ads on public broadcasting
\nservices.<\/p>\n
And time does not seem to be on its side. The economic slump
\nis affecting the whole market, including the country's
\nbroadcasters and their commercial shares. The industry has seen
\nstations reducing air time and broadcasting reruns to prevent
\nfurther losses.<\/p>\n
\"The (advertising) cake is getting smaller. One or two
\nstations will fall unless they are subsidized and TVRI will not
\nsurvive,\" warned Yusca Ismail, chairman of the Association of
\nAdvertising Agencies.<\/p>\n
Quoting RCTI president director Andi Rallie Siregar during a
\nrecent parliamentary hearing, Yusca said advertising expenditure
\nhas dropped by 70 percent. \"I think the situation is the same
\nwith the print media and radio.\"<\/p>\n
During the hearing, Siregar said television advertising
\nexpenditure was recorded at Rp 821 billion in 1997 and at an
\nestimated RP 241 billion for the first five months of this year.<\/p>\n
If the economic slump persists, advertising expenditure is
\nestimated to further decline to only 20 percent to 30 percent
\nfrom last year, and the industry will be in hot water.<\/p>\n
Yusca cited TVRI's weaknesses in the areas of programming,
\nhuman resources and marketing as its biggest drawbacks. The
\nchallenge is huge because it has to refurbish its image, improve
\nits low-rated programs, build a strong marketing team and upgrade
\nthe civil-servant mentality of its workers.<\/p>\n
Lots must be done before TVRI can reap commercial rewards.<\/p>\n
Former TVRI deputy director RM Soenarto said, \"TVRI should
\nfirst make its status clear. It must not be a foundation.\"<\/p>\n
As a foundation, TVRI is not supposed to seek profits and it
\nis nontaxable.<\/p>\n
An effort to change this status was put forward in 1976 by
\nthen information minister Ali Moertopo. After two years of
\nstudies, the TVRI completed a proposal for a possible change of
\nstatus.<\/p>\n
The proposal included several possibilities for TVRI to become
\na private enterprise or a general enterprise.<\/p>\n
Soenarto, now a television program production consultant, said
\nthe proposal was frozen and stored as files when Harmoko
\nsucceeded Moertopo as information minister.<\/p>\n
With its reputable Yogyakarta-based Multi Media Training
\nCenter and extensive relations with foreign institutions such as
\nthe Asian Broadcasting Union and the European Broadcasting Union,
\nTVRI has the potential to become a major station.<\/p>\n
If TVRI is allowed to air commercials, it must compete with
\nprivate stations and this could motivate the station to work
\nharder to improve its image and become more professional.<\/p>\n
Soenarto said that TVRI would be best separated from the
\ninformation ministry. \"This move could minimize the image that
\nTVRI is a government arm.\"<\/p>",
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