State keeps postal service monopoly

JAKARTA (JP): The state-owned postal service Perum Pos dan Giro (PPG) will continue its monopoly in the handling of letters, postcards and aerograms under a new regulation.

Under the new regulation, signed by Director General of Post and Telecommunications Djakaria Purawidjaja last month, the state postal service will also a monopoly on selling stamps.

The regulation ruled that private courier companies are not allowed to use the term "post" on services they offer.

Private courier companies are allowed to dispatch six items, including printing substances with a maximum weight of two kilograms for each package, newspapers/magazines with a maximum weight of two kilograms, mailing for blind people with a maximum weight of seven kilograms, small packages with a maximum weight of one kilogram each, goods packages with a maximum weight of 30 kilograms each and money transfers with no limits.

The new regulation stressed that private courier companies should charge higher fees for their services, as compared to PPG's services.

Djakaria announced yesterday that postal business consists of social services and commercial affairs.

"We are still studying the prospect of PPG operating as a limited company (perseroan terbatas) with an orientation of making profits," he said.

A proposal to upgrade PPG as a limited company was submitted to the Ministry of Finance, the official shareholder of state entities, early last year but the agency apparently needs to improve its performance.

According to Minister of Tourism, Post and Telecommunications Joop Ave, the number of post offices operated by PPG steadily increased from 1,076 in 1969 to 4,725 as of March.(icn)