Defiant Indovision sets out to attract new subscribers

JAKARTA (JP): Despite complaints from its customers, PT Matahari Lintas Cakrawala (Malicak), the operator of Indovision satellite television, aims to boost its customer base to 40,000 subscribers this year from the present 26,000.

Malicak's president Dicky Iskandar Dinata said that the company would intensify its marketing efforts and improve the quality of its service in order to reach the target.

"We plan to add new programs, especially sports programs, to satisfy our customers. With this effort we expect to lure more subscribers. This year, we expect to serve at least 40,000 subscribers," Dicky said after signing an agreement with state- owned aircraft manufacturer PT Industri Pesawat Terbang Nusantara (IPTN).

Under the agreement, Bandung-based IPTN will provide 40,000 outdoor unit (ODU) parabola dishes which will allow Indovision subscribers to receive programs from Indonesia's first broadcast satellite, Cakrawarta I.

The first batch of 5,000 ODUs will be delivered in March.

Malicak previously imported ODUs from Taiwan.

"This agreement with IPTN will enable Malicak to minimize its U.S dollar costs. This will benefit subscribers because they will be able to buy ODUs at more affordable prices," he said.

IPTN-produced ODUs will be sold at around Rp 500,000 (US$59) per unit to subscribers, while the imported ODUs cost over Rp 700,000 per unit.

Dicky said the economic crisis had slowed the growth of Indovision's new subscribers, although none of its existing costumers has canceled the service.

Malicak has been under attack from customers and the Indonesian Consumers Foundation for the loss of StarTV from Indovision's channels.

Malicak promised to replace the missing programs with new programs.

Dicky said the company had undertaken various efforts to improve its service and reduce its costs in a bid to survive the current economic crisis.

Malicak also plans to expand its cooperation with IPTN and other local firms to produce receivers and decoders locally, he said.

IPTN president Hari Laksono said the agreement was one of IPTN's efforts to diversify its business in order to survive the current economic crisis following a cut in government funding.

"Most of our contracts are for government projects, such as producing defense and security devices, and manufacturing helicopters and other aircraft for the Armed Forces. Most of these projects have been canceled because of the economic crisis. So we must actively seek other opportunities in order to survive."

IPTN has diversified its business by producing high-tech equipment other than the aircraft and defense devices it manufactures for the government.

"We entered the aerospace business because it has the biggest potential for profit. We also design computers and produce software to eliminate the millennium bug."

Hari said that IPTN had also terminated the contracts of 250 foreign technicians in order to cut its U.S. dollar costs. (gis)