Bringing order to the communications sector

People are watching with interest how the financial problems prevailing at two of our airlines, Sempati Air and Merpati Nusantara Airlines (MNA), are being handled. People are closely watching developments in the communications sector because of its strategic position, both in our national development efforts and in our international transactions.

Indonesia's domestic market is the fifth largest in the world and the majority of consumers are relatively young, which means a comparatively constant pattern of demand. In addition, Indonesia is a vast country, with three different time zones. It is therefore not surprising that some of our neighboring countries are trying to make ours their economic hinterland.

It has to be admitted that our communications sector must bear its share in our present current account deficit, which includes an entry for services such as communication and travel. Our weakness in the national shipping subsector is conspicuous. The same is true for our air communications subsector. Certainly, it would be sad to learn that our national airlines must become merely an alternative means of transport and communication.

Unless all these weaknesses are surmounted, we will only reap limited benefits from the presence of foreign investors. We need motivation to lead in free competition. We are putting our hopes in Sempati Air and MNA.

-- Bisnis Indonesia, Jakarta