Indonesian Political, Business & Finance News

TV companies fail to pay frequency charge

| Source: JP

TV companies fail to pay frequency charge

JAKARTA (JP): Director General of Post and Telecommunications
Djakaria Purawidjaja said that four private television stations,
TPI, RCTI, SCTV and ANteve had failed to pay frequency
utilization rights bills totaling Rp 9.54 billion (about US$2.2
million) between 1993 and 1996.

There are six television broadcasters in Indonesia, including
the state-owned TVRI and the privately owned TPI, RCTI, SCTV,
Indosiar and ANteve

"TVRI and Indosiar have paid up their billing charges,"
Djakaria told reporters here yesterday.

He said the detailed debts of the four television stations
were Rp 1.05 billion (owed by TPI), Rp 3.1 billion (RCTI), Rp
4.47 billion (SCTV) and Rp 915.57 million (ANteve).

"I've sent notification letters to the stations. I don't
understand what their problems were as even TVRI which is not
allowed to air advertisements is able to pay its bill on time,"
he said.

Some of the stations admitted they did not have any cash and
called on the government to reduce the frequency utilization rate
of Rp 50 million per transmitter, he added.

"But it's not possible to cut the rate unless we change the
ministerial decree stipulating the rate. So, before we amend the
regulation, they (the four stations) have to pay the bills,"
Djakaria said.

He indicated that the Ministry of Finance would cut the budget
of the Ministry of Tourism, Post and Telecommunications if the
latter office failed to get the payments.

"The amount of this cut may amount to as much as the total
debts," he said.

To avoid the punishment, his office had sent warning letters
to the four television stations with copies to the Ministry of
Finance, he said.

The government originally targeted to collect Rp 117.17
billion from telecommunications and radio frequency utilization
rights charges in the ongoing fiscal year.

Total collection from radio frequency utilization alone was
targeted to reach Rp 60 billion. As of Dec. 5 the amount reached
Rp 55.8 billion.

Djakaria refused to disclose whether his office would impose
penalties on the stations which fell behind in paying the
frequency utilization rights bills.

Such an action, however, could be an option, he added. (icn)

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