State TV, radio to merge in face of challenge
State TV, radio to merge in face of challenge
JAKARTA (JP): The government is revamping the management of its radio and television networks, RRI and TVRI, in anticipation of the advent of the era of information superhighways, a senior official of the Ministry of Information says.
Director General for Radio, Television and Film Alex Leo Zulkarnaen said yesterday that, once RRI and TVRI have been integrated into one agency with a revamped status and management, the networks will be working hand in hand with telecommunications companies to prepare for the information superhighway era.
Alex told a hearing with the House of Representatives' Commission I that the present methods of broadcasting radio and television may soon become obsolete, given the rapid development of information technology. "In some countries, they are already referred to as the 'traditional' broadcasting method."
New methods of broadcasting, already developed, are via direct satellite transmission and cable, and the transmitters are known as cable operators, program providers and satellite operators, he said.
TVRI and RRI could work together with private commercial stations to develop new product lines, in cooperation with PT Telkom and PT Indosat, he said, referring to the two state-owned telecommunication corporations.
"We need to take concrete and integrated steps to usher in the era of the Information Superhighway. Its development must be anticipated well, so that TVRI and RRI can take part in it."
Alex said the two networks were currently struggling, as a result of underfunding, to cope with the growing challenges imposed by globalization.
For this reason, the government is studying ways to strengthen the management of RRI and TVRI through changes to their corporate status.
The managements of the two agencies are to be integrated, but the precise status of the new entity has not yet been decided. The government is considering two options.
The first is that the merged broadcaster be made a public service company ('perusahaan umum'). The second is the creation of a more independent, profit-oriented corporation ('persero').
Alex said both forms had advantages and disadvantages.
Given that the government has no intention of altering the current mission of RRI and TVRI, which is to support the process of national development, the status of a public service company appeared to be the more appropriate choice, he said.
Alex noted, however, that the government was currently upgrading most of its public service companies to make them less financially dependent on the government.
Whatever the final decision, the change in the status of the new entity will have to await Indonesia's first law on broadcasting, which is expected to be presented to the House of Representatives later this year, Alex said.
Minister of Information Harmoko revealed last week that, as part of the drive for greater efficiency in the management of RRI and TVRI, half of their current staff of 15,000 would have to be laid off.
RRI is currently funded entirely out of the government's annual recurrent budget, limiting the radio station's ability to respond to changes in conditions and technology.
TVRI is partly funded by government budgetary allocation and partly by revenues raised from TV license fees. However, its current funding is not sufficient to enable it to meet all of the challenges associated with increasing competition from local and foreign networks.
Despite the increasing competition from local and multinational networks, made possible by Indonesia's "open sky policies", Alex said TVRI and RRI must survive.
He said the state networks had a duty to counter the negative cultural effects of the entry of foreign broadcasting into Indonesia. (29/emb)