Telecommunications bill to be deliberated in the House soon
Telecommunications bill to be deliberated in the House soon
JAKARTA (JP): The House of Representatives (DPR) will start on
Thursday the deliberation of a bill on telecommunications, which
would give more leeway to the private sector to enter the
telecommunications business.
Burhanuddin Napitupulu, the chairman of House Commission IV
for telecommunications, tourism and transportation, said on
Saturday the bill would revise the 1989 Telecommunications Law.
But he said the amendment would be made only on several
provisions, especially those related to the participation of the
private sector in the telecommunications services.
Under the existing Telecommunication Law 3/1989, the exclusive
rights in providing telecommunications services are granted only
to state companies.
Other parties, such as cooperatives, provincial administration
owned companies and private firms, are allowed only to
participate in the telecommunications services under a joint
operation or profit-sharing arrangement with the appointed state-
owned companies.
State-owned telecommunications company PT Telkom has been
granted the exclusive right to provide local fixed and fixed
wireless telecommunications services nationwide, including
services provided for and on behalf of Telkom pursuant to joint
operating schemes (KSO), for a minimum of 15 years.
Telkom also has the exclusive right to provide domestic long
distance telecommunications services for a minimum of 10 years.
While the exclusive right for overseas long distance services
is granted to another state-owned company, PT Indosat and its
joint venture PT Satelit Palapa Indonesia.
Despite the House's tight schedule, Burhanuddin said he was
upbeat the proposed law could be passed by early next month.
"We have agreed to limit the deliberation only to certain
specific issues so that we will be able to beat the schedule and
finalize it in a shorter time," he said.
He said the House would not be able to deliberate the entire
draft bill as previously proposed by the government due to the
time constraint.
The current House members will end their term in August and
new legislators will start in October.
The House has worked on at least 25 proposed laws since
January this year and many of them have not yet been passed.
Burhanuddin said the important aspects which would receive
special attention during the deliberation process would include
the mechanism in allowing private companies and cooperatives to
provide telecommunications networks and telecommunications
services.
"The common thread of the three substances really is about the
current government's practice of exclusive rights in
telecommunications businesses," he said.
The new telecommunications bill allows private companies and
cooperatives to participate in the telecommunications business
both as provider of telecommunications networks and services.
Unlike under the existing law, the new bill will no longer
require them to provide the services or networks in a joint
operation scheme with PT Telkom.
"That means the exclusive right of Telkom are being reduced at
some stages to allow other players to participate in a fair
competition in the telecommunications sector," he said.
He said the proposed reduction of the state's dominant control
over the telecommunications sector should be carefully studied.
"There are many things to be considered if we want to reduce
the government's unlimited control over the telecommunications
sector, especially on the readiness of the private sector and the
latter's willingness to fulfill the social obligation to invest
in nonproductive areas as currently carried out by Telkom," he
added.(cst)