Govt approves int't call rate increase: Report
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)