Improve telecoms human resources: Soeharto

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)