Indonesian Political, Business & Finance News

Govt allows private ownership of telephones

Govt allows private ownership of telephones

JAKARTA (JP): The government has introduced a new regulation to allow the public, including private firms and cooperatives, to install their own telecommunication cables.

Director General of Post and Telecommunications Djakaria Purawidjaja announced on Thursday evening that under the new regulation, No. 22/DG/1995 dated Feb. 14, subscribers to the state-owned domestic telecommunications operator PT Telkom can choose any terminal they like and maintain the phones themselves.

"Subscribers, under the new regulation, are now responsible for the terminals and cables in their houses or buildings," he said.

"Subscribers, therefore, are free to choose private parties to install terminals and cables in their houses or buildings."

The new regulation makes Telkom only responsible for installing cables up to phone terminal boxes.

Djakaria said the government will soon rule on the fees for installing new telephone lines.

In addition to the monthly billing for calls, Telkom, recognized in the old ruling as owning the telephone lines in houses and buildings, currently charges monthly fees for terminal maintenance and leasing. They charge Rp 31,000 (US$13.40) for business subscribers, Rp 20,500 for households, and Rp 15,500 for social facilities. All the fees are subject to 10 percent value added tax.

The installation fee for a new telephone line in Jakarta is now Rp 900,000 for businesses, Rp 700,000 for households, government offices and military offices, and Rp 560,000 for social facilities. (icn)

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