Govt raises local call prices, cuts long-distance rates

JAKARTA (JP): Starting Jan. 1, the rate of local calls will increase 8.7 percent to Rp 125 per pulse while domestic long- distance calls will drop 10.2 percent to Rp 97 per pulse.

Minister of Tourism, Post and Telecommunications Joop Ave announced yesterday that as of next year, new fixed-line installation fees would be cut by up to 50 percent, depending on the purpose of the phone.

"The reduced-rate period for domestic long-distance calls, however, will only be 11 hours per day from 14 hours per day during workdays," he said.

He said reduced rates on Sundays and holidays were unchanged, 75 percent off from 11 p.m. to 6 a.m. and 50 percent off from 6 a.m. to 11 p.m.

The 75 percent reduced rate for long-distance calls will be from 11 p.m. to 5 a.m. (previously 11 p.m. to 6 a.m.), and 50 percent off from 6 a.m. to 7 a.m. and 8 p.m. to 11 p.m. (previously 6 a.m. to 8 a.m. and 8 p.m. to 11 p.m.).

Business and commercial sectors will face the most significant adjustment in rates as the 25 percent surcharge on long-distance calls will be extended four hours to between 8 a.m. and 6 p.m from the previous period of 9 a.m. to 3 p.m.

Based on decree No. 150/PR.301/MPPT-97 signed by Joop, the government also terminated the free 50 pulses per month for business, household, government office and Armed Forces subscribers. The free facility, however, has been retained for subscribers with social missions.

Telephone rates are based on the pulse, which ranges from 1.5 to three minutes, depending on distance and time period.

"Charges at card pay phones will rise 8.33 percent starting Jan. 1, 1998, to Rp 130 per pulse from Rp 120," Joop said.

He said charges of leased circuits -- telecommunications facilities usually used by big companies and operators -- would be reduced by up to 30 percent.

The minister said the government was not ready to announce adjustments for cellular phones and international calls.

The government said two weeks ago air-time charges for cellular services would likely rise 10 percent to Rp 297 from Rp 270 per minute.

Telecommunications rate adjustments has become a traditional activity every late December since the floating of Telkom's shares in the London, New York, Jakarta and Surabaya stock exchanges in 1995. The company said in its prospectus for its initial public offering in October 1995 that its tariffs were subject to adjustment by the government every year.

There are two factors considered when setting the maximum tariff adjustment each year: the inflation rate minus the X factor. The X factor is decided by the government.

Because inflation in 1996 -- the country's latest inflation rate -- was 6.47 percent and the X factor is 3, the maximum adjustment rate for telecommunications charges in 1998 will be 3.47 percent.

The maximum adjustment rate in 1997 was 2.64 percent (1995's inflation rate of 8.64 percent minus 6, the X factor). (icn)

Table: Telephone tariffs for 1998

Services Current Tariffs New tariffs Changes

(Rupiah) (Rupiah) (%)

I. New installation

1. Business

Category 1 800,000 450,000 -50

Category 2 450,000 350,000 -22

Category 3 360,000 300,000 -17

Category 4 280,000 250,000 -11

Category 5 190,000 175,000 - 8

2. Household

Category 1 590,000 295,000 -50

Category 2 335,000 250,000 -25

Category 3 250,000 200,000 -20

Category 4 165,000 140,000 -15

Category 5 85,000 75,000 -11

3. Social

Category 1 410,000 205,000 -50

Category 2 235,000 150,000 -36

Category 3 175,000 120,000 -31

Category 4 115,000 100,000 -13

Category 5 60,000 50,000 -17

II Local calls 115/pulse 125/pulse 8.7

III Card pay-phone 120/pulse 130/pulse 8

IV Long-distance 108/pulse 97/pulse -10.2