Mastel urges government to form regulatory committee

Mastel urges government to form regulatory committee

JAKARTA (JP): The Indonesian Information and
Telecommunications Society (Mastel) urged the government on
Monday to immediately establish an independent regulatory
committee for the telecommunications sector in light of more open
competition in the near future.

Sutrisman, a senior executive at Mastel, said the open
competition, as a consequence of the new telecommunications law
which took effect in September, would inevitably create friction
among competing operators.

"An independent committee is needed to issue regulations that
will solve these problems between operators," he said in a
discussion.

Sutrisman said a regulatory committee could determine who
could join the competition so that no single majority would
monopolize the market.

"Operators need a level playing field so that competition runs
fairly," he said.

Mastel chairman Sukarno Abdulrachman said even if a committee
was established now, its benefit would only be felt in another
few years.

"So it is imminent that we establish one now if we don't want
to miss the train," he said.

The director-general of post and telecommunications, Sasmito
Dirdjo, agreed that an independent regulatory committee was
needed.

Sasmito said Indonesia had fallen behind other countries in
the telecommunications sector, and needed heavy investments to
keep up.

"The country needs a transparent and predictable regulator
that is good for investment," he said.

He said the role of the committee would not overlap or even
overshadow the role of the directorate, as his office would only
deal with government policies while the committee would regulate,
monitor and control the competition.

The committee's duties would include regulating
telecommunications rates and issuing permits, Sasmito said.

"It should also have the power to punish and revoke permits,"
he added.

The committee would comprise a chairman, a vice chairman and
five members, Sasmito said, adding that a secretariat should also
be formed to help with day-to-day operations.

Sasmito said, however, that an independent committee did not
mean it was separate or not responsible to the government.

He said the committee's members could be appointed by the
government with acknowledgement from the House of
Representatives.

"Therefore, members would technically be civil servants, but
another problem would be how much to pay them as obviously a
civil servant's pay would not be enough," Sasmito said.

The deputy of the state minister for administrative reform,
J.B. Kristiadi, said only the secretariat should be made up of
civil servants, while the committee should be run by people from
the private sector. (tnt)