Govt approves int't call rate increase: Report

JAKARTA (JP): Without any prior publicity, the government has approved an increase in international call and telex rates, effective on Nov. 15, Antara reported on Tuesday.

Quoting a source, the state news agency said the approval was stipulated in a Minister of Communications decree issued on Nov. 12.

Details on the percentage increase were unavailable, it said.

"The decision to increase the tariffs is unfair because it was taken without publication and without discussing it with consumers and owners of telephone kiosks," the source said.

In September, the ministry's Director General of Post and Telecommunications Sasmito Dirdjo said that the government would proceed with its plan to raise phone rates in October.

He said the measure was needed to avoid massive foreign exchange outflow to overseas providers.

The government raised international call rate by 25 percent in March.

Publicly listed state-controlled international call operator PT Indosat has lobbied the government to raise the rate to offset the rupiah's sharp depreciation against the U.S dollar.

Indosat argues the rupiah's fall has caused its international communications costs to rise because its providers, such as America's AT&T and Japan's NTT, charge it in dollars while its revenues are in rupiah.

The Indonesian currency has lost about 66 percent of its value to the dollar since July last year. It is currently trading at about 7,500 to the dollar, compared too 2,450 in early July.

Analysts said a rate increase was essential for Indosat to maintain its strong operating results and warned its losses could adversely affect the stock exchange.

Antara said the new decree set international calls tariffs to Brunei, Bangladesh and Vietnam at Rp 4,900 per minute.

Tariffs to Afghanistan, Algeria, Angola, Bolivia, Congo, Ethiopia, Ghana, Iran, and Malaysia are Rp 5,650 per minute, while those to Cyprus, Israel, Jordan, Lebanon, Nepal and the Philippines are Rp 6,250 per minute.

Phone calls to Alaska, Fiji, Malta, Monaco, Portugal, Turkey and the Vatican are charged Rp 7,150 per minute, while those to Australia, Canada, Hawaii, New Zealand, and Taiwan are Rp 8,300 per minute.

Rates to the United Arab Emirates, India, Japan, and Saudi Arabia are Rp 9,400 per minute and to Austria, Belgium, China, Germany and Italy Rp 10,700 per minute.

Meanwhile, the chairman of the Indonesian Telephone Kiosks Owners Association (APWI) Saleh Daulay complained the increase was burdensome to his members because they would have to pay to reprogram their software to the new rates.

Saleh said kiosk owners had already paid to reprogram their software several times this year due to rate increases by PT Telkom, the state-owned company which manages local and long- distance calls. (gis)