Cable operator optimistic about Indonesian market

Cable operator optimistic about Indonesian market

JAKARTA (JP): Indovision, the first cable television operator
to handle leading U.S. networks, is optimistic that it will be
able to enlist 100,000 customers throughout the country within
two years.

The Jakarta-based Indovision's service, which started up two
months ago, promises to bring "world class television programs"
and "the information revolution" to its Indonesian viewers, its
executives said in a press conference yesterday.

Through the new pay TV service, customers will be able to
enjoy programs from Home Box Office (HBO) for entertainment
films, The Discovery Channel for documentary and science,CNN
International for world news and ESPN for sports.

Some of the channels like CNN can still be viewed by people
who own dish antennas. However, beginning in October, these
channels will scramble their signals and then can only be
received using specially provided decoders.

Indonesia already has one state owned television station,
TVRI, and four commercial private stations, RCTI, SCTV TPI and
AN-TV.

The Direct to Home Television (DTH-TV) Indonesia vision, which
receives broadcasts directly from the Palapa satellite and does
not use relay stations, is owned by PT Amcol Graha and PT
Matahari Lintas Cakrawala (Malicak).

Jack Porray of Malicak said his company had obtained a license
to collect subscription fees from hotels for CNN and ESPN in
1991. Malicak has now been licensed to provide the satellite
broadcasting services to everyone in Indonesia in addition to the
hotels.

Porray said programs from HBO, the largest premium cable
program service in the U.S., are passed through censorship in its
facility in Singapore which compiles the materials to be seen in
Indonesia.

PT Amcol Graha, the local, sole distributor of Sony products,
is the distributor of the Canadian-made integrated receiver
decoders needed to receive programs from the four programmers.

With a decoder costing Rp 4,350,000 (about US$2,015) exclusive
of value added tax, and an annual subscription fee of $410, the
new TV service's prime targets will be major companies and
wealthy families.

"One of the reasons they (decoders) are expensive is that you
can be assured that they will not show up in Glodok at a cheaper
price. The security of the encryption is very strong," Porray
said.

Glodok is one of Jakarta's largest and oldest shopping centers
where original and pirated electronic equipment is on sale at
lower prices.

Indovision initially targeted 25,000 customers this year but
due to the delay in the project, it reduced this year's target to
10,000. (pan)