RI telecoms policy wins foreign support
JAKARTA (JP): Secretary-general of the Ministry of Tourism, Post and Telecommunications Jonathan L. Parapak said Monday Indonesia's decision not to change its telecommunications policy won support from several developing nations.
During the final rounds of a series of bilateral meetings between members of the World Trade Organization's (WTO) telecommunications negotiating group, held in Geneva last month, several countries praised Indonesian's decision, Parapak said.
He said Indonesia had reiterated it would not change its telecommunications policy and not fully liberalize the industry by 1998.
In Geneva Indonesia presented the basic telecommunication conditions in Indonesia including local, long distance and international telecommunications, data switching, telex, telegraphs and cellular phones.
"We stressed that the long distance telecommunications services, for instance, would not be licensed to any other party except the state-owned PT Telkom until 2006," he said.
Telkom holds the exclusive rights to operate long distance calls until 2005.
The government, under decree No. 6/102/1995, also handed over the exclusive rights to international telecommunication services until 2005 to PT Indosat and PT Satelindo.
Indonesia has three major telecommunications regulations: Telecommunications Law No. 3/1989, Government Decree No. 8/1989 and Ministry of Tourism, Post and Telecommunications Decree No. 39/1993.
Under the regulations, only state-owned companies can operate basic telecommunications services.
The ministerial decree stipulates that the minister determines international telecommunication tariffs so Indosat and Satelindo compete in terms of services rather than tariffs.
The deadline for a WTO telecommunications pact is Feb. 15, postponed from its original deadline of April 30, 1996.
Liberalization will take effect on Jan. 1, 1998. The WTO estimates the world telecommunications market is worth US$512 billion a year.
Telecommunications is one of three major service areas which are to be deregulated through the WTO. The others are financial services and maritime transport.
Parapak said Indonesia had originally been liberal in its telecommunications industry by allowing five private firms to install and manage telecommunication networks in the country's five operational regions, under 15-year joint operating contracts valid until 2010.
Leading telecommunications operators participating in the joint projects include France Telecom, West Inc., Telstra of Australia, NTT of Japan, Cable and Wireless of Britain and Singapore Telecom.
The involvement of private operators in Indonesia's telecommunication industry will be permitted only if such firms cooperate with state-owned companies in joint operations or management agreements.
Parapak said if necessary he would return to Geneva to sign the WTO telecommunications pact. (icn)