Cool reception for media mergers idea
JAKARTA (JP): Minister of Tourism, Post and Telecommunications Joop Ave has proposed financially troubled media companies should merge to survive the worsening economic crisis.
But top media executives cold shouldered the idea offered during a seminar Wednesday on multimedia, saying that each media company had its own policies and "ideology" that were impossible to mix.
Media sources say 257 of the 287 print media companies in Indonesia are in serious financial trouble due to the economic crisis that has catapulted newsprint prices sixfold and slashed advertising revenues since last July.
Private television stations have also reported sharp drops in advertising revenues and soaring prices of imported programs.
Joop advised media owners to "leave their egos to one side" and unite to survive the economic turmoil, saying that he was aware of differences in policies between companies.
"Is there any country with no differences of ideas? Differences are something normal. But we should not be arrogant, and say 'oh, I want to be different from him'," he told reporters after opening the one-day seminar held to commemorate National Press Day.
Atmakusumah, the director of Dr. Soetomo Press Foundation said mergers along the lines that Joop proposed were impossible because media companies have ideologies and political agendas that cannot be compromised.
"The mergers would be very difficult as media companies usually grow up with a certain political stand or ideology," he told The Jakarta Post.
Atmakusumah said that what would be possible would be powerful media companies taking over weaker ones.
Jacob Oetama, editor in chief of the mass circulation Kompas daily, said mergers would only augment production costs but bring about no significant results.
"If we merge, we will have to recruit employees while the circulation would remain the same," he said, pointing out that the main reason for the crisis in the publishing industry was the soaring price of newsprint.
Tribuana Said, chief editor of Merdeka daily, said specialized publications that could no longer survive the current crisis should close.
"There are many publications specializing in beauty, fashion, sport and law but Indonesian readers are not accustomed to such magazines while the companies are spending a lot of money to survive," he said.
Parni Hadi, general manager of Moslem-oriented Republika daily supported Joop's opinion, saying that problems related to ideology should be overcome if the media were concerned only with humanity.
"Merging would be difficult but possible. Media with the same religious missions, for example, could unite," he said.
M.S. Ralie Siregar, chief director of private TV station RCTI, said print and electronic media should consider cooperating, particularly in the fields of news reporting and marketing, to survive. (09)