Telkom going on

Telkom going on
a spending spree?

From Rakyat Merdeka

Amid the various difficulties the population has to face as a
result of the protracted economic crisis, including the soaring
price of necessities, such as fuel, electricity and telephone
rates, state-owned Telecommunication Company (Telkom) announced
the distribution of big bonuses from its 2001 profits during its
shareholders general meeting.

The bonus for its president director is Rp 818 million, its
director is Rp 736 million, the chairman of the board is Rp 327
million and for each board member is Rp 290 million. The lowest
monthly salary for a Telkom employee is Rp 2.1 million.

For the general public, the news is shocking and painful. They
have received the bonuses from annual telephone rate increases,
not the achievements of Telkom's executives and personnel.

Despite the big profits it has reaped, Telkom keeps raising
its rates. With the approval of the House of Representatives
(DPR), it again increased telephone rates in March 2002 for the
classic reason of attracting investors. It apparently prefers to
offer large gains to investors at the expense of consumers, while
raising their personnel's pay and fringe benefit packages, which
are far bigger than those at other state-owned companies.

Strangely, the government and the DPR do not care at all. In
liberal countries, such as the U.S., companies are not allowed to
scoop maximum profits and distribute them as large bonuses
without any concern about their environment. They have social
obligations, and their governments make rules to limit marked
differences in society.

In Indonesia, which in theory is not a liberal state,
companies must have social concern. The board and executive
directors of Telkom must realize that its profit has come from
burdening consumers and there should not be any spending sprees.

The bonuses should have been given to the tens of thousands of
small-scale businesses as capital, children who are school
dropouts or to help relieve the state budget deficit. Meanwhile,
Telkom has also incurred huge debts and is paying installments
plus interest.

HM DIMYATI
Jakarta