An arbitrary act of Telkom

An arbitrary act of Telkom

From Bisnis Indonesia

The latest balance sheet of publicly listed telecommunications firm PT Telkom shows that it has booked a profit of over Rp 2 trillion. Komarudin SK, operational and marketing director of Telkom, said the cumulative rise in telephone rates by 40 percent would hardly cover the costs of construction of a permanent telecommunications network. (Bisnis Indonesia. March 30, 2001).

This means the increase in telephone rates is intended to finance the construction of a new telecommunications network. (It was earlier reported, Telkom plans to establish some four million new telephone lines). So the rates are to be raised by over 40 percent to build four million new telephone lines.

It must be borne in mind that having a telephone is no longer a luxury today. PT Telkom should raise its rates only after considering the appropriateness and the fairness of the hike to its subscribers. If there were other telephone companies, would PT Telkom raise its rates as it pleases?

As Telkom plans to establish new telephones lines, it is only fair that it pioneers "people's capitalism", a phenomenon common in capitalist countries, including the United States and Western Europe.

Raising telephone rates while holding a monopoly smacks of arrogance and coercion.

DEHEN BINTI

Jakarta