Media executives against plan on foreign investment

Media executives against plan on foreign investment

JAKARTA (JP): The Indonesian Journalists Association (PWI) and
the Association of Newspaper Publishers (SPS) are closing ranks
against the government's plan to open up their industry to
foreign investors.

Minister of Information Harmoko meanwhile expressed surprise
at the government's decision, included in the latest deregulation
package, saying that he was never consulted.

Harmoko insisted that as far as he was concerned, the
Indonesian media remains closed to foreigners as stipulated in
the 1982 Press Law.

As the official who grants the SIUPP, the publishers license,
the minister said he would see to it that no foreigner will ever
have a say in the running of a domestic press or broadcast
concern.

He also pointed out that a law takes precedence over a
government regulation, upon which the new rule allowing foreign
ownership is based.

Harmoko said there was poor coordination between ministry
officials as "nobody asked for consultation from me before the
new policy was announced".

PWI Chairman Sofjan Lubis meanwhile said that given the
contradiction between the new regulation and the existing press
law, the government should review its decision, the Antara news
agency reported.

SPS Chairman Handjojo Nitimihardjo remarked that the new
regulation "is an incredible challenge to SPS".

He said the organization was currently still trying to find
ways of keeping down soaring prices of newspaper paper, "and now
we are confronted with yet a new problem".

Mission

He joined hands with Sofjan in calling on the government to
reconsider its decision to allow foreigners into the press and
broadcasting industry.

"Foreign media would surely be profit oriented ...The
Indonesian press has a mission, that is educate the nation ...
based on Pancasila," Handjojo said.

The media executives took their time to prepare their official
reaction to the government ruling and it was members of the House
of Representatives (DPR) who were the first to pick up the cause,
declaring that the Indonesian media was not for sale.

Many DPR members on Friday had already warned that allowing
foreign control of the Indonesian press would cause irreparable
damage to the nation.

A more cautious comment however came from Goenawan Mohamad,
the chief editor of the Tempo magazine, who pointed out that the
ruling was inevitable given that Indonesia is a signatory of the
newly updated General Agreement on Tariffs and Trade (GATT) which
calls for a comprehensive liberalization of trade and investment.

"The new situation just has to be accepted," Goenawan told The
Jakarta Post.

He offered a word of wisdom on the benefits of competition
from outsiders. "It might just encourage competition. Who knows?"

He said Indonesia could learn from India's experience. "Let's
wait and see what happens, because Indonesia does not seem to be
afraid to open up its mass media (to foreign ownership)".

Confused

Goenawan also pointed out that the government "seemed
confused" over the legal force of regulations.

He said that while the new policy, which is a government
regulation, clearly contradicts the 1982 Press Law, the
government has been willing to ignore this law in the past. He
referred to the ministerial decree issued by Harmoko in 1984,
which allows him to revoke press publishing licenses in
contravention of the law.

"If a ministerial decree can surmount a law, then a government
regulation can surely do that as well," he said.

To break out of the current confusion, Goenawan proposed that
the law be amended, but this would also entail changes in the
government regulations.

"The government should also anticipate the possibilities of
foreign parties intending to invest in electronic media, or those
who want a share of it," he said.

"The government would surely be embarrassed to take back its
regulation or repeal the Press Law. This shows that they (the
government) do not abide by a consistent policy." (pwn)