Alinafiah: Pos Indonesia ready to end monopoly, face competition
Alinafiah: Pos Indonesia ready to end monopoly, face competition
JAKARTA (JP): State-owned PT Pos Indonesia says it is ready to
let go of its monopoly rights to deliver personal letters,
postcards, and aerograms and face competition, including from
courier companies.
"PT Pos did not want the monopoly in the first place, it was
the government's decision," Pos president Alinafiah said on the
sidelines of a meeting of the Asperindo, the Indonesian
association of courier companies, on Friday.
"Our job as an operator is to provide the best service to the
people," he said. "We return the matter back to the government as
regulator. Do the people still need protection in the form of
monopoly?"
Pos Indonesia's monopoly has been justified on grounds of
public interest to provide a mail system that ensures
confidentiality, affordability, and accessibility throughout the
country.
One of the most profitable state enterprises, Pos Indonesia's
long held monopoly was strengthened by a 1984 government edict.
The edict also stated that private courier companies could
deliver other forms of mail like printed matter and small
packets.
Alinafiah said Pos Indonesia would benefit professionally from
the competition once its monopoly rights were revoked.
"With stiffer competition, our company would be challenged to
perform better and to improve our service," he said.
Pos Indonesia reaped a Rp 1.04 trillion ($130 million) profit
in 1999 and expects to gain some Rp 1.4 trillion this year,
Alinafiah said.
"Last year was a good year because we received substantial
earnings from ballot mail during the general elections," he said.
He did not explain the reason for his optimistic 40 percent
profit increase this year.
Pos Indonesia and Asperindo in December submitted a joint
proposal to the government on reforming the mail industry,
including allowing greater competition from private companies.
Asperindo chairman Rudy J. Pesik welcomed Pos Indonesia's
offer to relinquish its monopoly.
He said Asperindo and Pos Indonesia have disputed the
definition of "documents", which make up the bulk of the business
for the courier companies.
Pos Indonesia has insisted that all documents are "mail" and
therefore come under its monopoly.
"If the edict were revoked, there would be no more dispute
about the definition," Rudy said. "Asperindo members have no wish
to deliver private mail, we only deliver documents."
He defined "documents" as correspondence from business to
business, while private mail comprises correspondence between
individuals.
Pos Indonesia also expressed its commitment to support
Asperindo in facing global competition.
"Local resources have to be combined, including resources from
the private sector," Alinafiah said.
Rudy said the courier companies could forge cooperation with
Pos Indonesia in various areas, from buying idle space on Pos'
mail trucks, facilitating Pos' post offices in remote areas, to
joint upgrading of human resources, and sharing technology.
He said individual companies have already started cooperation
with Pos Indonesia.
Asperindo has some 530 company members throughout Indonesia,
including PT Birotika Semesta/DHL, and PT Cardig Express
Nusantara (CEN). (10)