Indonesian Political, Business & Finance News

Bill on broadcasts

Bill on broadcasts

From Bisnis Indonesia

The government is to return the broadcasting bill to the House
of Representatives because it contains several impracticable
technicalities.

This is good because it shows the government's sensitivity and
desire for accuracy.

If the House considers the bill, I think the revocation of the
regulation on TV contributions should be reconsidered.

There is no country in the world that levies such a fee on
government telecasts. Government television programs are financed
by the state budget, from sponsorship and advertisement revenues.

The government issues permits to private TV stations who are
allowed to air advertisements in return for paying a large sum of
money to the government.

TVRI, the government television station, mainly contains
information on government programs, so it is the government that
is the interested party. The people also want entertainment; this
is provided by private television stations.

Television ownership has increased significantly throughout
the country, in remote rural corners and urban slum areas. TV
contribution fees cannot be imposed on TV owners because it is no
tax. TVRI is not authorized to confiscate TV sets if the owners
have not paid the fee. The contribution fee remains voluntary.

The amount people pay for a TV set includes value added tax
amounting to between 10 percent and 20 percent of the sale price.
If an additional fee is charged it means it is double taxation
which is contrary to the 1993-1998 state guidelines.

I think the TV contribution fee should be abolished to
alleviate the burden borne by the Indonesian people.

SUHARSONO HADIKUSUMO

Jakarta

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