PT Pos maintains monopoly over postal services

JAKARTA (JP): The government will maintain the exclusive rights awarded to state-owned PT Pos Indonesia in providing postal services in the country.

Director General of Post and Telecommunications Sasmito Dirdjo said here on Wednesday the state-owned postal service provider will be given more time to strengthen itself before opening up the sector to private companies.

"The government wants PT Pos to focus on improving its services before allowing other players to enter the sector," Sasmito was quoted as saying by Antara news agency.

The government announced on Tuesday it was lifting the monopolies given to state-owned telecommunications companies PT Indosat and PT Telkom earlier than originally schedule. However, the exclusive rights given to PT Pos Indonesia will remain untouched.

Sasmito said the longer time frame given to PT Pos to enjoy its exclusive rights in providing postal services should be used by the company to modernize its services and restructure its organization.

With a more modern system, the company could, for example, reduce the number of its operational areas from 14 to 11 and classify its managerial activities on the basis of business principles, he said.

He said the government had worked out a blueprint on national postal policy and a postal draft bill which were expected to serve as guidance for the government, PT Pos Indonesia and the Association of Indonesian Courier Companies (Asperindo).

According to the existing law, PT Pos Indonesia enjoys the exclusive right to provide mail services, including the delivery of letters, documents and money orders.

Private couriers are allowed to provide other forms of services such as the delivery of printed matters and small packages.

Asperindo expressed regret over the government's decision to maintain the monopoly awarded to PT Pos Indonesia.

Association chairman Rudi Pesik said it was difficult for private courier companies to accept the government's decision because the existing law granting the state-owned postal company its exclusive rights lacked clarity.

If the exclusive rights are maintained, private companies will continue to operate in the dark, he said, adding that a lack of clarity in the definition of those postal services that fall under the monopoly of PT Pos Indonesia often put private couriers in difficult situations.

Mail services can mean many things, including the delivery of documents, which make up the bulk of the business of private courier companies, he said.

He also said he had earlier proposed the government clarify the regulations but had received no response. (hen)