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)