Telephone rates

Telephone rates
shouldn't go up

From Forum Keadilan

The delay in discussions at the House of Representatives (DPR)
on the increase of telephone rates is understandable, due to the
lack of transparency in the calculation of such an increase, as
presented by PT Telkom. In addition, PT Telkom has not given its
customers much advance notice of the planned increase.

I cannot accept their reason that the increase is necessary
due to expansion and continued maintenance of the existing
network. It is an investment and there are other ways to fund it,
such as the selling of bonds, shares or finding new investors.

In reality, PT Telkom makes a huge profit every year and this
year, for the first six months, it reaped a profit of Rp 1.72
trillion. As a blue chip corporation, with its shares selling at
around Rp 3,650, it should not raise its rates.

The government, as well as PT Telkom, should also be more
transparent regarding the joint operation scheme (KSO), as I get
a strong impression that the above planned increase has been
pushed by these partners, who are foreign companies. It also
doesn't make sense that the rate increase for the next two to
three years has already been fixed.

It is obvious that the government and PT Telkom do not take
people's purchasing power into consideration, as stated in Law
No. 36/1999 on telecommunication rates. Furthermore, the
development of technology in telecommunications should make rates
lower and more affordable.

AS AD NUGROHO
Coordinator of Consumer Empowerment Program

Jakarta