Text messages cut revenue of PT Pos Indonesia

Novan Iman Santosa, The Jakarta Post, Jakarta

Many people will experience the information revolution firsthand this Idul Fitri by sending a text message to their loved ones instead of doing it the old way: sending a greeting card or letter through the post.

This new technology can instantly connect us with our loved ones, and is cheaper, faster and more practical than the post.

But it has a victim, the state-owned post office, PT Pos Indonesia.

"We have suffered a drop of 40 percent in mailed greeting cards and letters during the peak season thanks to texting and e- mail services," the company's Greater Jakarta Division secretary Baharuddin told The Jakarta Post on Monday.

Indonesian cellular telephone operators interconnected their text services last May, which lead to a surge in text messages.

Telecommunications data shows that more people are expected to use the service this year as the total number of cellular subscribers is expected to increase to around nine million compared to 5.3 million last year and about 3.2 million in 2000.

But despite the losses caused by texting, Baharuddin said the Greater Jakarta Division still expected a surge in mail for Idul Fitri.

"Mail will increase by some 7 percent to 10 percent while money order and parcel services are expected to go up by 15 percent each," he explained.

Baharuddin said that last year the Greater Jakarta Division delivered an average of 600,000 items and received some 700,000 items per normal day.

The figures soared during the peak season, when the division delivered about 1 million items and received some 1.3 million items daily.

During last year's peak season, the division delivered 4,000 parcels and received 750 parcels compared to 2,500 and 800 outside the peak season.

The division also transmitted Rp 1.8 billion and received Rp 250 million in money orders compared to Rp 1.4 billion and Rp 400 million outside the peak season.

"The 7 percent to 15 percent increase, however, is still an early prediction as we are still at the beginning of the fasting month," said Baharuddin.

"Currently, the volume of mail posted has only reached some 70 percent of the volume sent during last year's peak season. The amount of mail will increase during the second half of the Ramadhan fasting month," he added.

Despite the competition from e-mail, text message services and courier companies, Baharuddin was still optimistic that the postal service possessed particular advantages that would ensure its survival.

"We have a vast and long experience. PT Pos Indonesia also has the largest coverage nationwide with low charges. You can send a postcard to anywhere in the country for only Rp 1,000," he said.

Baharuddin emphasized that most of Indonesians still considered it better to receive mail in their hands instead of electronically.

Deddy, an architect, echoed Baharuddin's view, saying that he had sent text messages last year and would also use the service this year to send Idul Fitri greetings to his friends.

"But I still send greeting cards to special people such as my family members and my clients." Deddy told the Post. "I guess nothing can really replace the mail."