Tough challenge: How to save state-owned 'TVRI'

Tough challenge: How to save state-owned 'TVRI'

JAKARTA (JP): Legislators were engaged in intense debate on
Tuesday over what actions to take to save the ailing state-owned
broadcasting station TVRI.

Legislator Effendy Choirie from the National Awakening Party
(PKB) proposed that the television station be privatized.

Other legislators, however, were concerned that privatizing
the company would make TVRI lose its social mission and make it a
purely commercial enterprise.

Effendy argued that selling the station to the private sector
would lighten the financial burden on the state.

"Selling it to the public will stop the losses," he said at a
hearing with Commission I and State Minister for Communication
and Information Syamsul Muarif. Also present was TVRI director
Sumita Tobing.

TVRI does not air commercials. Instead, it receives 12.5
percent of advertising revenues of privately owned TV stations,
SCTV, Indosiar, Metro TV, ANteve, RCTI and TPI.

Among those opposed to the idea of selling TVRI to the private
sector was Bambang Sadono from the Golkar faction. He said the
change of ownership would transform the state television into a
purely profit-oriented enterprise.

Legislator Burhan Djabir Magenda argued that the government
should do everything to maintain TVRI as a state-owned entity to
maintain its social mission.

Sumita acknowledged that lack of professionalism of its
personnel as well as poor efficiency were to blame for problems
facing TVRI.

"I do not believe that TVRI will be able to improve its
professionalism as long as it is run by civil servants," said
Sumita, who is also a manager of private television station SCTV.

She added that the fund from the state budget accounts for
only 10 percent of its total operational costs and it has to seek
other sources for the remaining 90 percent.

"There are only two options, to declare bankruptcy or to keep
it alive. And how can that best be done?" she asked.

Sumita rejected suggestions to collect fees from the public to
survive.

"I do not think it is feasible because 70 percent of our
viewers are poor people in rural areas," she said.

She explained that among her top priorities would be a plan to
have the assets of TVRI audited.

"It is ironic that although it is 39 years old, TVRI has no
filing system. Without being audited, there could be no effective
planning," she said.

Sumita said although it was said that TVRI owned 400
broadcasting relay stations across the archipelago, there was no
clear data about them.

She emphasized that under current conditions, only 10 percent
of the employees were still committed to their job due to low
salaries.

"The current shows aired by TVRI are the work of the few who
are still satisfied to receive a salary of between Rp 700,000
(US$74.46) to Rp 900,000, per month" she said, adding that there
were a total of 7,200 employees. (08)