PT Pos Indonesia's monopoly to cease

PT Pos Indonesia's monopoly to cease

JAKARTA (JP): The government plans to terminate the postal
monopoly of state-owned PT Pos Indonesia by amending postal
regulations, according to Minister of Tourism, Post and
Telecommunications Joop Ave.

The minister said yesterday that Postal Law No. 6/1984, which
gave the sole right to PT Pos Indonesia to provide postal
services, needed an amendment to accommodate the changing postal
business in the country.

"The postal regulation is not in favor of supporting postal
service operators in Indonesia to take advantage of larger
opportunities," he said when officially opening a conference of
the Association of Indonesian Express Companies (Asperindo).

He said the amendment would begin with a series of reviews of
the changing rules in the country's telecommunications business.

"Previously, the telecommunications business was controlled
only by state-owned PT Telkom. Since private companies have been
allowed in the sector, telecommunications has been growing very
fast," he said.

It was also necessary to create the same condition in the
postal sector, which would improve the role of private postal
operators, he added.

He said he was convinced that postal services would progress
more significantly if private companies had the right
opportunities.

Director General of Post and Telecommunications Djakaria
Purawidjaja said yesterday that feasibility studies had been
conducted over the past two years to modify postal regulations.

"In many postal regulations the term 'post' always refers to
state-owned postal operator Pos Indonesia, as if 'post' is the
trademark of Pos Indonesia," he said.

The ideal term instead of "post" was "postal", he added.

Postal Law No. 6/1984 says that private companies are not
allowed to operate as an agency for Pos Indonesia.

According to Djakaria, such a restriction is not appropriate
anymore.

"We have also learned that Pos Indonesia can only handle 10
percent of postal service opportunities in the country."

"About 90 percent of postal service business is waiting to be
completed. This is where private firms can improve their
participation," he said.

He said there would be about one billion letters sent this
year.

"It's a very small amount. I am sure there is the potential
for 10 billion letters. But on the other hand, I know Indonesia
is still categorized as a nation with one of the lowest rates of
writing and sending letters."

Rudy Pesik of Asperindo said yesterday that mailing letters
was just one part postal services.

"Other services include shopping deliveries, package
deliveries, and courier and express services," he said.

He said Asperindo grouped 129 member companies, much less than
the 640 companies licensed by the government as courier service
operators. (icn)