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)