Thu, 24 Jul 2003

Phone charge hike plan clarified

The Jakarta Post, Jakarta

The recent establishment of the Indonesian Telecommunications Regulatory Agency (BRTI) will not lead to an immediate increase in phone charges, according to a government press statement.

I Ketut Prihadi, a spokesman for the Directorate General of Posts and Telecommunications at the Ministry of Transportation, said on Wednesday that although the setting up of the BRTI was one of the key requirements demanded by the House of Representatives for the government to be allowed to raise phone charges, there were other conditions that also had to be fulfilled by telecom players, especially the provision of more fixed lines in rural areas and the settling of the interconnection fee problem.

"The establishment of the BRTI is indeed one of the conditions required by the House for the government to hike phone charges," Prihadi admitted.

"However, there are other conditions the government has to fulfill in order to raise the charges," he added. "On top of that, the minister (of transportation) must also consult any such plan with the House."

The press release did not say when the government would raise phone charges. A hike announced at the beginning of this year had to be delayed due to public protests.

The government launched the long-awaited BRTI last week, prompting analysts and even top officials of the Directorate General of Posts and Telecommunications to predict an immediate increase in phone charges.

But after days of criticism, including from consumer organizations, Minister of Transportation Agum Gumelar said that the government had yet to decide on whether it would raise phone charges this year, citing various factors, including current political and social conditions.

In the ministerial decree on the BRTI, it is stated that the BRTI will regulate and supervise the local telecoms industry. According to the release, the duties of the BRTI are all aimed at creating fair competition, ensure smooth interconnections, and attracting new operators into the industry.