'Joint operation telecoms safeguard local companies'

JAKARTA (JP): Minister of Tourism, Post and Telecommunications Joop Ave is confident the private-public joint operation system for telecommunication projects would protect local companies amid free trade in information technology.

Joop said yesterday Indonesia's decision to endorse the information technology agreement under the World Trade Organization (WTO) framework was not made "merely because it was there".

"In fact, some countries may, in a way, feel outdone by Indonesia," he said.

Under the joint operation system -- known as KSO -- the state telecommunications firm PT Telkom and its private partners are responsible for installing and operating telephone lines in specified areas for 15-year periods.

Each private consortium is given three years to install new lines and 15 years to operate them: Telkom will share the revenue from these operations.

The joint operations, which were officially launched last year, will give Telkom an estimated Rp 15 trillion (US$6.5 billion) within the contract periods.

Joop said the contracts would help the country accommodate foreign information technology.

"Since (domestic and foreign telecommunication firms) are bound by the 15-year contracts, we will have 15 years to prepare ourselves before entering a free information technology market," he said.

The information technology agreement, endorsed by WTO members last week, aims to scrap tariffs in the rapidly growing market for information technology products. The market was worth about US$600 billion last year.

Deadline

The United States proposed a year 2000 deadline for zero- tariffs on information technology products. Developing countries, including Indonesia, did not agree to a specific time frame although they basically supported the proposal.

Joop said yesterday Indonesia "refused to be dictated" by developed countries on when to completely liberalize its information technology products market.

"We cannot be treated the same way... We are willing to approve the proposal because we want to develop. But don't dictate to us," he said.

The Ministry's Secretary-General Jonathan Parapak said yesterday that about 75 percent of information technology products had zero-tariff levels.

"I think we will be ready to completely liberalize our information technology products market some time between 2003 and 2005," he said.

He said the government was developing the "Nusantara 21" vision which was expected to involve extensive private sector participation.

The vision aims to provide equal access to all the country's regions and districts with an accurate, up-to-date database.

The database would be transmitted by various telecommunication technologies, including fiber-optic and satellite transmissions.

"This will require not only hardware infrastructure but software appliances as well. And to do this, we will need huge investments which we hope will mostly come from the private sector," he said.

Joop yesterday launched a CD-ROM and an official home page on Indonesian tourism on the Internet. He also introduced the official mascot of Indonesian tourism, called Jakantara, which was taken from the Javanese wayang figure of Petruk.

The tourist promotion database, developed by PT Ultra Sumber Daya and PT Internet Nusa Bhakti, would contain information on domestic tourist destinations. (pwn)