Local papers reduce pages due to crisis
YOGYAKARTA (JP): Local publications have been forced to reduce pages and change publication regularity to survive the steep increase in the newsprint price over the past few months.
The Kedaulatan Rakyat group, for example, has for about a month stopped the eight supplement pages of its daily. The Kedaulatan Rakyat, with a circulation of 90,000, now has 16 pages every day.
General manager and president Soemadi M. Wonohito said the group had also decided to print its biweekly Gatot Kaca every five weeks, its biweekly Mekar Sari every four weeks and its weekly Minggu Pagi every two weeks.
"We are doing this for the sake of economizing," he added.
According to Wonohito, the management had to spend an extra Rp 1.7 billion (US$226,666) a month to pay for the newsprint alone. It had also been forced to increase the retail and subscription prices of the paper.
The previous retail price of Rp 700 per copy is now Rp 900 while that of the monthly subscription fee is Rp 19,000 per month. It was only Rp 15,000 last December.
"So far, we have not dismissed any of our 580 employees. We don't expect to," Wonohito said, adding that the publication group's stock of newsprint is secure until May.
Another local newspaper, the Bernas daily, has also taken similar steps. It has not raised the retail price of Rp 800 per copy, but instead raised the monthly subscription fee from Rp 16,000 to Rp 18,000.
"It would be ideal if we could raise the subscription fee to Rp 25,000, but we can't do that because our readers wouldn't be able to afford it," said general manager Kusfandi.
Other steps taken include reducing the circulation from 40,000 to 25,000, reducing the pages from 16 to 12, reducing the Reuters wire service subscription to picture service only, terminating all types of overnight work, limiting out of town assignments and avoiding printing in color unless demanded by advertisers.
"At a time like this, however, it's almost impossible to expect a color advertisement. Some advertisers have even canceled their booking space due to the monetary crisis," Kusfandi said, adding that the daily's main income is from circulation.
"There's been a significant drop in our income from the advertisement sector," he added.
The management has decided to, temporarily, accept only new subscriptions with advance payment. "We're doing this because we also have to pay in cash for the newsprint," he said.
Due to the shortage of funds, the daily has to buy its newsprint every month instead of stockpiling like the Kedaulatan Rakyat.
"So far, we have been able to maintain our 12-page publication, but if the situation worsens we may have to go to eight pages," he said. "What matters most is that we appear every day."
Early last year, the newsprint price was Rp 1,300 per kilogram, according to Antara. It increased to Rp 1,500 per kilogram in the middle of the year, then shot up to Rp 6,025 per kilogram in December. The steep depreciation of the rupiah against the U.S. dollar has been blamed for the price increase.
Reports
Director General for Press and Graphics Dailami said in Jakarta Thursday that there had not been any reports of publications closing down because of the monetary crisis.
"The Ministry of Information has not received any reports about publications that will or have stopped activities," he was quoted by Antara as saying after joining a breaking of the fast gathering hosted by Minister of Information R. Hartono.
The Association of Indonesian Newspaper Publishers have said that 70 percent of Indonesia's 286 publications are on the brink of bankruptcy and will close down because they cannot afford the newsprint.
"We need to be concerned, but we have to believe the situation will not last," he said, adding that his ministry would understand if some publishers took steps to save their publications.
He said steps could include reducing circulation, limiting the number of pages, tightening staff or changing the format of publications from nine columns to a tabloid format.
Minister Hartono reminded Jakarta-based editors in chief who attended the breaking of the fast gathering that closing down publications disrupted the flow of information to the public.
"We have to realize, the press has to realize its role as the deliverer of information," he was quoted by Antara as saying. "If you close down publications... then the mission is not accomplished.
"I am very concerned about the situation facing the national press... please remain united to overcome this problem together," he said.
He also promised to monitor every effort being made by the publishers association and the Association of Indonesian Journalists to deal with the crisis. (swa/swe)