Opportunity for private sector in telecom
Opportunity for private sector in telecom
The economic crisis has seriously impacted the business of members of the Indonesian Telecommunications Association (Apnatel). The depreciation of the rupiah against the U.S. dollar caused this because most components used in the telecommunications industry are imported and paid for in dollars.
Many contracts Apnatel members have with state-owned PT Telkom and private company Telkomsel are not being renewed, causing the companies lost business. According to Apnatel chairman Rahardjo Tjakraningrat, approximately 70 percent of 1,400 companies are facing bankruptcy and are changing their line of business.
To overcome the problem, especially in regard to employees specializing in telecommunications who are facing retrenchment, Apnatel is providing training through a non-governmental organization, so that they can become operators of Warung telefon (Wartel) as this is a promising line of business. Members are also developing a more complete concept, in which they can work either in Indonesia or abroad.
The telecommunications sector needs to be prepared to face globalization. "We should start with improving the human resources sector as there are big challenges in this sector," Rahardjo said.
As for government policy governing the industry, Rahardjo said it was quite good but some changes, such as abolishing collusion, corruption, nepotism, were needed.
Apnatel, through its Telecommunications Society, has also formed a team to work in cooperation with the Ministry of Communications on recommending amendments to Regulation No. 3.
With regard to PT Telkom and PT Indosat, Apnatel disapproves of plans to sell their shares in order to find a strategic partner to raise about US$1.5 trillion. It claims the timing is not good because at the moment the price is very low, while PT Telkom, PT Indosat and other telecommunications companies have good prospects, provided that Indonesia's economy recovers soon.
Apnatel said it would be better if this field was given to local professional people appointed by the government, from outside both companies, to recharge the business culture in facing competition.
"If we don't give our professionals a chance, they will never be world-class operators," Rahardjo said.
On telephone tariff increases, Rahardjo approved as long as they were proportional and did not burden society. The increases are needed because lines are paid for in dollars, he said.
As for Apnatel members, Rahardjo suggested that they find a wise solution to deal with current problems and that they maintain their present ability in order to be prepared for any positive changes that may happen in future telecommunications developments.
He said telecommunications technology always advanced, not only for telephones but also for multimedia as well as data transfer and computerization systems.