PT Pos maintains monopoly over postal services

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)