Official expects cellular tenders to be transparent
JAKARTA (JP): A senior official of the National Development Planning Board (Bappenas) expects that the most-awaited cellular telecommunications tender will go transparent even before the lucrative bids are opened by the government.
"It will be very fair if the government, before the tenders are opened, announces first how it will evaluate the applications," Bappenas Deputy Chairman Rahardi Ramelan told reporters after speaking at a seminar organized by the Indonesian Transport Society at the headquarters of Garuda Indonesia yesterday.
He said that based on Presidential Decree No. 16/1995, the government must announce the evaluation system in any open tender to warrant fairness and transparency.
He admitted that in some cases, however, Bappenas was disappointed to learn that an unexpected firm which had never been involved in a tender often turned out to be the winner.
"I hope the cellular telecommunications tenders will be transparent and fair, in spite of the names standing behind the participating parties," Rahardi said.
By the end of last month, there were at least 120 companies already submitting applications for the government's licenses to provide Personal Communication Network (PCN) services in the country, even though the government has not yet officially announced when the tender for such a business will be opened. Most of the bidders are backed by "high-level" names.
Rahardi, who is also the chief commissioner of PT Telkomsel, said that Bappenas would not be involved in the tenders, which will be the first ever held in the country's cellular telecommunications history.
In a list leaked to the press, the Ministry of Tourism, Post and Telecommunications has registered the firms to be selected in a prequalification process. Among the names on the list were Probosutedjo, the half-brother of President Soeharto (with his company PT Citra Buana Nusa); Sudwikatmono, a foster brother of President Soeharto and Siti Hutami Endang Adiningsih Soeharto, one of the President's daughters (PT Cellnet Nusantara).
Executives of leading companies and business groups interested in the projects included Peter Sondakh of Telekomindo, James T. Riady of Lippo, Fadel Mohammad of Bukaka and hotelier Pontjo Sutowo.
Other names on the list were Agus Kartasasmita, Nunun Daradjatun, Dewi Motik Pramono, Mrs. Nuryana Prasetyo, Alex E. Kawilarang, Mrs. Syaukat Banjaransari, Let. Gen. (ret.) Kemal Idris, Hari Indra Utama Tahir, Roy Rahajasa Yamin and M. Arifin.
There were also young professionals, including Thareq K. Habibie, a son of State Minister of Research and Technology B.J. Habibie, Isfan Fajar Satryo Try Sutrisno, a son of Vice President Try Sutrisno and Ary Sigit Soeharto, one of President Soeharto's grandsons (PT Ari Citra Adhitama).
Other parties registered on the list included Mrs. Hartini Soekarno, Mrs. Nelly Adam Malik and Mrs. Rahmi Hatta; Coordinating Minister for Political Affairs and Security Soesilo Soedarman; former Air Force chief marshal (ret.) Rilo Pambudi; Mrs. A.Y.S.W. Djatikusumo, chairman of the Commission V of the House of Representatives Achmadi and secretary-general of the Ministry of Defense and Security Let. Gen. (ret.) Sugeng Subroto.
Existing cellular operators found on the list were Telkomsel, Telekomindo and PT Satelindo.
The applicants will first undergo prequalifications before participating in open tenders.
Telecommunications analysts believe that the government will launch the tenders later this year to pick up several PCN operators.
PCN is the next generation of the digital wireless telephone system that uses light, inexpensive handsets with long battery life to communicate via low-powered antenna.
The new generation of digital mobile cellular telecommunications includes the Personal Communications System (PCS-1900) and the Digital Cordless System (DCS-1800) from Europe, the Personal Handy-phone Service (PHS) developed by Japan, and Code Division Multiple Access technology from the United States.
The country currently uses three different cellular mobile telecommunications systems provided by seven different operators serving some 300,000 users.
The three systems include the Global System for Mobile Telecommunications (GSM), the Advanced Mobile Phone Service (AMPS), and the Nordic Mobile Telephone.
PCN includes the Code Division Multiple Access system, which is derived from the AMPS, while DCS-1800 and PCS-1900 are from GSM.
The PHS and DCS-1800 are the systems most likely to be adopted by the government in the personal network system.
Based on the country's telecommunications law, any PCN providers will be required to work with the state-owned telecommunications operators, just like the seven existing cellular providers. As PCN is categorized as a basic domestic telecommunications service, such a service must be run jointly by PT Telkom. (icn)