Improve telecoms human resources: Soeharto

BANDUNG, West Java (JP): President Soeharto called yesterday for improvements in the quality of human resources in the telecommunications sector, saying that current low quality does not represent a permanent defect but only indicates the great potential for future development.

Speaking to participants of a three-day international telecommunications conference here via a teleconference facility, Soeharto said that the abilities of the labor force in developing countries are not inferior to those of its counterpart in industrialized countries.

"The question is how to enhance, collectively, the quality of these human resources to become a great force for development," he said.

The conference, attended by more than 400 executives of various national and international telecommunications companies, is focusing on human resources development in the telecommunications business.

Minister of Tourism, Post and Telecommunications Joop Ave told a press conference here yesterday that the high-level participation of the private sector in the telecommunications business was necessary to overcome financial, human resources and technological hurdles.

Indonesia, with a population of about 195 million, currently has only two telephones for every 100 people; one of the lowest telephone penetration ratios in the world.

"This is a great challenge that the government cannot face on its own," Joop said.

Joint ventures

Joop said the conference is also expected to lead to new joint venture deals, done behind the scenes.

Pekka Tarjanne, secretary-general of the International Telecommunications Union, said in his opening address that the participation of private companies in telecommunications projects should not be viewed merely as "privatization." He stressed the role of governments in the process of telecommunications infrastructure.

"There must be rules because, if the government took no responsibility, the result would be chaos," he said.

Joop, in response to questions about the dominant role of big business in the telecommunications sector, said that he placed no limitations on the size or number of businesses entering the sector.

"I said I would select, not limit, investors in the sector, because I think it is essential to create not only a democratization of wealth in the country, but opportunity as well," he said.

"Based on this, I will reserve several opportunities and give them to the little guys ... or create a conducive situation to do so," Joop said, adding that such "little guys" would have to be young, new investors with limited capital.

Among the businesses which are to be strictly reserved for small-scale investors is the running of telecommunications kiosks, he said.

Major projects currently being planned in Indonesia by big telecommunications businesses include an open bid for the laying of two million telephone lines in various parts of the country over the next five years. A further three million lines are to be provided by the state-owned domestic telecommunications operator, PT Telkom.

Joop said that this target could be reviewed and added to if necessary.

"I said the total target of five million lines was a minimum. It is possible that more investors may enter," he said without elaborating.

He said that for the next five years, at least, US$10 billion would be needed for the development of the telecommunications sector, including radio paging services, cellular telephones and fixed-line infrastructure. (pwn)