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)