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)