Thu, 20 Oct 1994

State-owned `TVRI' and `RRI' to be merged into one company

JAKARTA (JP): The government will merge the state-run television and radio stations, currently two separate state agencies, into one enterprise, but will not privatize them, Minister of Information Harmoko announced yesterday.

Harmoko said Televisi Republik Indonesia (TVRI) and Radio Republik Indonesia (RRI) could be managed by one state-run company to improve efficiency and keep up with public demand.

"Ideally, the management of RRI and TVRI should be merged because both are broadcasting services under the Ministry of Information," he told journalists after meeting with President Soeharto.

He corrected earlier reports that suggest that the government was planning to privatize the television and radio stations to improve their management.

"With the new status as a state enterprise, TVRI and RRI are expected to develop their programs," Harmoko said, adding that they would remain the government's media for promoting the development of the nation.

Although the status of TVRI will change, the government will continue to adhere to its policy of banning commercial advertisements on the state-run television network because TVRI can still rely on state funds for its budget.

The government banned commercials in the early 1980s on the grounds that they encouraged consumerism. TVRI receives funding from the government, as well as from license fees.

With the advent of private commercial television stations five years ago, TVRI has also been receiving royalties from each of the four private networks.

Critics have pointed out that the station's lack of funds resulting from the no advertisement policy is responsible for the poor quality of its programs.

When pressed concerning how the government could expect TVRI to profit if it was not allowed to broadcast commercials, Harmoko said that intensifying fee collection was "one way".

He said the plan to turn TVRI and RRI into a single company was being handled by a team consisting of officials from his ministry and the office of state administrative reforms.

The plan will be high on the agenda of the upcoming technical meeting of the state electronic media.

Harmoko had met with the President to discuss the press coverage of next month's meetings of the 18-member Asia Pacific Economic Cooperation (APEC) forum here and in Bogor.

"The President guaranteed there would be no foreign journalists barred from covering the event. All accredited journalists are free to enter Indonesia," he said.

"Even Portuguese journalists may enter," he said when asked if journalists from Portugal could cover the meetings and visit East Timor.

He added he was optimistic that foreign journalists would do balanced reporting about Indonesia. "I think they will present only facts and not twist them," he said.

Harmoko said up to yesterday, 1,250 foreign journalists have registered with the conference's committee. (pan)