Private TV stations' debts exceed Rp 40b

Private TV stations' debts exceed Rp 40b

JAKARTA (JP): Private TV stations owe their state-owned
counterpart TVRI more than Rp 40 billion (US$11.7 million),
Minister of Information R. Hartono said yesterday.

Hartono told a House of Representatives session that four of
the country's five private TV stations had been accumulating the
debts since 1994.

He said RCTI was the only station to have paid its dues.

A private TV station must contribute 12.5 percent of its
annual advertisement revenue to TVRI in exchange for its
operational license.

The state-owned station is not allowed to air commercials.

Surabaya-based SCTV owes the most with a debt of Rp 20.6
billion accrued from 1995.

Indosiar has the second highest debt -- Rp 9.2 billion,
excluding advertising revenue earned in the last two months of
1996.

TPI owes 6.3 billion, and ANteve owes about Rp 4.3 billion.

"We have frequently asked them to pay their debts, but they
say they cannot afford to pay that much this time around,"
Hartono said.

He said that if paid the arrears would contribute Rp 50.9
billion toward TVRI's targeted income of Rp 120 billion for the
1997/1998 fiscal year.

Ministry of Information data shows TVRI's annual revenue has
dropped since 1993.

After enjoying an income of Rp 104.9 billion in the 1993/1994
fiscal year, its income dropped to Rp 104.7 billion in 1994/1995,
Rp 85.9 billion in 1995/1996 and Rp 75.8 billion in the last
fiscal year. (amd)