RI telecoms policy wins foreign support
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)