Cellular airtime rates raised

JAKARTA (JP): The Ministry of Tourism, Post and Telecommunications announced yesterday a 20 percent and 12 percent increase in cellular telephone airtime charges and monthly service fees respectively.

Cellular phone airtime charges will increase to Rp 325 per minute from Rp 270 per minute, while monthly service fees will rise to Rp 65,000 from Rp 58,000, it announced.

The ministry said it had also agreed to reduce the maximum charge of cellular telephone installation fees to Rp 200,000 (US$22.20) from Rp 300,000.

It did not say, however, when the new tariffs would take effect.

The currency crisis, in which the rupiah's value against the U.S. dollars has dropped by about 70 percent, has affected mobile phone operators.

About 90 percent of companies' investments were in dollars, and the dollar's appreciation has burdened the country's seven mobile operators.

"Tariff adjustment is inevitable, as the investment and activities of cellular operators were in dollars," the ministry said.

The new tariffs would slightly relieve some of the companies' burdens, but it would not give them short-term profits, it said.

Indonesia's seven mobile operators are PT Telkomsel, PT Satelindo, PT Excelcomindo, PT Metrosel Nusantara, PT Telesera, PT Komselindo and PT Mobisel.

The government sets the minimum airtime charges and maximum installation fees for cellular phone services.

On Jan. 1 the government also raised the rate of local (noncellular) telephone calls by 8.7 percent to Rp 125 per pulse and cut intercity calls by 10.2 percent to Rp 97 per pulse. (das)