Telkom announces new phone rates

Telkom announces new phone rates

JAKARTA (JP): State-owned telecommunications operator PT
Telkom unveiled on Saturday its new rates for local and domestic
long-distance telephone calls which have been increased by up to
46.67 percent.

The new rates, according to a decree issued by the
communications minister on Friday, became effective when the
clock struck midnight on Sunday.

Telkom raised its rates for domestic long-distance calls by
28.57 percent to Rp 144 per pulse, local calls by 24.14 percent
to Rp 180 per pulse and telephone magnetic card service by 46.67
percent to Rp 220 per pulse.

One pulse lasts from seven seconds up to three minutes
depending on the distance of the phone call and the time the call
is made.

The rates for coin-operated public telephones remain Rp 100
per pulse, but one pulse has been extended from 2.5 minutes to
three minutes, and new fixed-line installation fees remain
unchanged.

Monthly line rental for businesses has been increased by an
average of 17 percent, while that of residential and social
mission establishments by 9 percent to 10 percent.

The new rates for long-distance calls made during the most
expensive hours of 8 a.m. to 6 p.m. on weekdays are Rp 90 per
minute within a 20-kilometer radius, Rp 120 for a 20-kilometer to
30-kilometer radius, Rp 1,545 for 30 kilometers to 200
kilometers, Rp 160 per minutes for 200 kilometers to 500
kilometers, and Rp 2,700 for a distance of over 500 kilometers.

Weekday super economy rates are Rp 60 per minute, Rp 90, Rp
310, Rp 440 and Rp 540, respectively according to the zoning
areas.

The new super economy rates for Sunday and public holidays are
Rp 60 per minute, Rp 90, Rp 310, Rp 440 and Rp 540 respectively
for phone calls made between 11 p.m. and 6 a.m.

The rate increase, however, was met with strong protest by the
Indonesian Consumers Foundation (YLKI) and businesspeople
affected by the rise.

"All of Telkom's excuses for the increase could be countered
without such an increase. Why should it burden consumers?" YLKI
chairwoman Tini Hadad asked.

Tini said Telkom had no reason to increase its rates at least
until after the elections in June, as most people were suffering
during the severe economic crisis.

She said Telkom's rationale that the hike was crucial to
offset its losses was not true, as the company was merely earning
less profit than in previous years.

Its justification that rates in Indonesia were among the
lowest in the region is also not acceptable because the country's
income per capita has shrunk drastically since the monetary
crisis began in mid-1997, making it one of the lowest in the
world, she said.

Tini also criticized the House of Representatives for hastily
approving the increase proposal.

The chairman of the Indonesian Indigenous Businessmen's
Association, Srijanto Tjokrosudarmo, said Telkom should have
waited until the country's economy bounced back before increasing
its rates.

"The fact that Telkom's operational costs were burdening the
company because of the rupiah's depreciation against the U.S.
dollar shows that it was not performing optimally," he was quoted
by Antara as saying.

The chairman of the Indonesian Telecommunications Society,
Soekarno Abdulrachman, said the rate increase would lower the
number of households that could afford telephone lines.

But he defended the government's decision, saying the increase
in rates was crucial to help Telkom's supporting industries
survive.

"The fact is that many of Telkom's supporting companies have
gone bankrupt as demands fall," he was quoted by Antara as
saying. (das)