Analysts question independence of BRTI

Analysts question independence of BRTI

Evi Mariani, The Jakarta Post, Jakarta

Analysts are questioning the independence of the newly-
established Indonesian Telecommunications Regulatory Agency
(BRTI), saying it was far from meeting their expectations of an
ideal regulatory body.

"In my view, the BRTI doesn't meet the criteria for the sort
of independent regulatory body we have been demanding," Donny
B.U., the executive director of Information and Communications
Technology (ICT) Watch told The Jakarta Post on Sunday.

"The independent spirit died right away at the time the BRTI
was born," he added.

Last week, the Ministry of Transportation, which also handles
communication, announced the establishment of the BRTI, which is
one of the requirements set by the House of Representatives in
allowing the government to hike telephone charges.

Soon afterwards, the director general for posts and
telecommunications at the ministry, Djamhari Sirat, told
reporters that the another increase in charges was imminent.

The House, telecommunications industry players and observers
have said an independent regulatory body was needed to ensure
fair competition within the industry and to protect consumers.

"I see indications that the government established the BRTI
only to get its way in raising charges," said Donny.

The fact that the government still retains a dominant role in
the BRTI reflects the government's reluctance to surrender its
powers in the telecommunications industry. This only serves to
undermine the independence of the agency, Donny said.

Under Ministerial Decree No. 31/2003, the BRTI consists of the
Directorate General for Posts and Telecommunications and the
Telecommunication Regulatory Committee. The committee has five
members: four are chosen from among the public and one is the
director general for posts and telecommunications, who also
chairs the committee. The committee can make decision through
consensus or voting, and all the decisions of the committee need
the approval of the directorate general.

During the press conference to announce the establishment of
BRTI, Sirat promised that the government would not intervene in
the committee's decision-making process. The directorate general
would only function to "rubber stamp" all the decisions made by
the committee so that they became public policies.

However, Indonesian Cellular Phone Providers Association
(ATSI) chairman Rudiantara told the Post that the dominance of
the government on the BRTI clearly showed the body was not
independent.

"The government, as a shareholder in Telkom (state-owned
telecom company) is one of the industry players. So, it will
pursue its own interests," he said.

He added that prior to the establishment of the BRTI, ATSI and
other players had given input to the government on the type of
regulatory body they needed.

"However, they (the government) went ahead and established the
BRTI, which is different to what we had in mind," Rudiantara
said.

He asserted that the industry players would continue providing
input to the government regarding the regulatory body.

"But I can see that a change in the law will be needed in
order to create an ideal regulatory body," he said. "Given the
circumstances, it could take quite a long time."

The Telecommunications Law No 36/1999 does not obligate the
government to establish an independent regulatory body. The law
only says the government "shall be able to delegate its functions
of regulating, supervising and controlling telecommunications to
a regulatory body".