Opening up the media?

Opening up the media?

As might have been expected, the new deregulatory steps
announced by the government on Thursday have drawn a great deal
of comment. But no sector opened up to foreign investors by the
new deregulation package has managed to stir up as much
controversy as that of the mass media. Little wonder. The media
has been opened up to foreign participation by Government
Regulation No. 20/1994 as if it is an industry with only economic
implications.

The Press Act of Indonesia, which is still valid at present,
is quite clear on this matter. It specifically prohibits foreign
capital participation in this country's media. Article 13 of the
Press Act states that "...the capital of a Press Corporation
shall be wholly national, whereas all its founders and board
members shall be Indonesian citizens."

Furthermore, Article 15 of the Ministry of Information
regulation Concerning Press Publication Operation Permits says,
"...press companies/publishers and their respective publications
are not permitted to give or to receive aid in the form of
capital or any other contribution in whatever form to/from other
parties, including other press companies/publishers which openly
or in a disguised form will cause a shift in ownership/management
of the press companies/publishers concerned, to the party of the
donor."

Thus, the law is unambiguous on two important points: First,
all press publications must be nationally owned in the sense that
their capital must be wholly owned by Indonesians. Second, aid
and "contributions" from other parties is allowed on the
condition that it has the approval of the Minister of
Information, who acts in consultation with the Press Council.

Perhaps not surprisingly it was these two points which
Minister of Information Harmoko, in a statement to reporters on
Friday, chose to emphasize when asked to comment on the new
measures. Maintaining that he had not been consulted on the
matter, Harmoko said the legal barriers against foreign capital
in the mass media were constructed to deter unwanted foreign
values from penetrating the national culture as well as
preventing Indonesian publications from being taken over by
foreigners.

Opposition to opening the media to foreign money was also
voiced loudly in the House of Representatives, where several
members voiced their concern over the prospect of foreign media
barons influencing public opinion in Indonesia. On the other hand
there are those who consider Thursday's deregulation measures a
mere public relations ploy as far as the media sector is
concerned. After all, which foreign media barons would be willing
to invest millions of dollars in a business that runs the risk of
having its license revoked at any moment for publishing the wrong
kind of information?

All in all, we agree with those who feel that a further
explanation of the government's intentions are due with regard to
the deregulation of foreign investments in the media business.
For example, assuming that the new regulation is to be
maintained, will the press publication licensing requirement be
rescinded to make investment more attractive? Or does the
government have a specific sub-sector of the media in mind, such
as television? Or will the Press Act continue to stand as it is?

In the face of all this, somehow, we cannot help but be
reminded of the remarks made by press baron Rupert Murdoch during
his visit to Jakarta some months ago. Explaining to reporters
that satellite television would spearhead his expansion into the
Southeast Asian region, Murdoch maintained that "...all
regulations restricting the flow of information will change
because the market forces behind the current economic
globalization trend cannot be stopped."