House urges Telkom to review rate hike

House urges Telkom to review rate hike

JAKARTA (JP): The House of Representatives urged the
government on Wednesday to review a plan to increase fixed
telephone rates by an average of 21.67 percent beginning next
week.

In a hearing with Director General of Post and
Telecommunications Djamhari Sirat, vice chairman of the House's
Commission IV for infrastructure and transportation affairs
Rosyid Hidayat, said that the planned hike in telephone rates
needed further clarification before being implemented.

The government should form a special team incorporating
various sectors of society such as the Indonesian Consumers
Agency (YLKI) and telecommunication-related industries to review
the planned increase, Rosyid said at the conclusion of the
hearing.

The House also demanded the government give adequate time to
provide information to the public of the details of the hike
before the actual implementation, he added.

However, the House did not question the government's decision
to increase the airtime rate of cellular phones on July 1 to Rp
375 (about US$0.033) a minute from Rp 325 a minute.

The House had in fact approved the government's proposal to
increase the fixed-line telephone rate by 45.49 percent within
three years.

On May 11, it agreed to increase the rate by 21.67 percent
this year, 15.6 percent in 2002, and 8.22 percent in 2003.

The telephone rates for fixed lines and mobile telephones are
determined by the government except for pre-paid cellular
services.

However the House was not informed of the details of the 21.67
percent hike scheduled for June 10, commission member from Golkar
party Rully Chairul Azwar, said during the hearing.

"The formula is too complicated and has not been sufficiently
made known to the public," he said in the hearing.

Director General of Post and Telecommunications Djamhari Sirat
said that he would inform the newly installed Minister of
Communications, Budhi Mulyawan Suyitno, of the House's decision,
and that it was up to the minister to decide.

"But yes, a postponement is always possible," he said during a
break in the hearing.

Budhi was appointed the new minister by President Abdurrahman
Wahid on Tuesday, replacing Agum Gumelar who has been appointed
the coordinating minister for political, social, and security
affairs.

He formally took over Agum's position in the Ministry of
Communications on Wednesday.

The House's decision to postpone the telephone rate hike came
at the instigation of several telecommunications experts which
saw that the new tariff formula outlined in the ministerial
decree on domestic fixed-line telephone rates, dated May 31,
2001, was not in line with the agreed 21.67 percent hike.

Telecommunications expert, R.M. Roy Suryo, disclosed for
example that besides increasing the rate by an average of 21.67
percent, the government had also in fact modified the duration of
the pulsa (time unit) from between eight seconds to 180 seconds,
from the existing 180 seconds per pulsa.

This meant that in some instances there will be an increase of
up to 167.86 percent, he said.

Chairman of the Indonesian Telecommunications Society (Mastel)
Sukarno Abdulrachman said the society also urged the postponement
of the hike to give the public more time to digest the new
policy.

"It's good that they (the House) asked for a review and in the
meantime the implementation of the ministerial decree was put on
hold," he said.

Darul Siska, a legislator, said that the rate structure
outlined in the decree is deceiving to the public, and he urged
that the review team's work be accessible for public scrutiny.

He said the acceptable time frame for the government to
publish details of the hike to the public was between one to two
months before implementation. (tnt)