Indonesian Political, Business & Finance News

Government reviews telecommunications laws

Government reviews telecommunications laws

JAKARTA (JP): To support the rapid development in
telecommunications, the government is evaluating regulations on
the industry.

"Telecommunications is a global industry and it always changes
in correlation with the development of technology. That's why
Indonesia should also anticipate this," chairman of Dimhart &
Associate Law Firm, M. Dimyati Hartono said.

He said that the government planned to amend the regulations,
which he was appointed to review, some time ago.

He said that he completed the draft of the review last month
and has submitted it to the Ministry of Tourism, Post and
Telecommunications.

"Minister Joop Ave has principally agreed upon the draft and
has allowed me to continue with the next phase," he told The
Jakarta Post.

According to Dimyati, the present regulation is outdated
because of the rapid development in both the technology and
business aspects of the telecommunications industry.

"For instance, presently only state-owned firms are allowed to
deal with basic telecommunications, while private companies can
just deal with non-basic telecommunications," he said, adding
that the new regulations are also expected to facilitate the
entry of foreign investors into the country's cellular mobile
industry.

He said that policies and regulations of telecommunications
need updating as the global telecommunications industry has grown
very fast.

"Telecommunications has become one of the four major aspects
of Indonesia's economy, including utility, infrastructure,
commodity. It is also one of the state's potential earners," he
said.

Currently there are three major telecommunication regulations
in the country, being the Telecommunications Law no. 3/1989,
Government Decree no. 8/1989 and a decree from the Ministry of
Tourism, Post and Telecommunications no. 39/1993.

"Many of the clauses in the regulations should be adjusted,
while several new terms and conditions should be created to
anticipate wider business opportunities," Dimyati said. (icn)

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