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".