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."