'TVRI': A television station in waiting

'TVRI': A television station in waiting

By Antariksawan Jusuf

JAKARTA (JP): It is a classic dilemma: how can the state
television station TVRI survive its role as a broadcaster serving
the people and, at the same time, be financially independent?

Minister of Information Muhammad Yunus, formerly known as
Yunus Yosfiah, has mooted an idea of allowing the station to air
commercials, saying the station should be run professionally.

But will it work?

Since the government banned commercials on TVRI 17 years ago,
it almost totally fails to attract viewers. In areas where
Indonesians have access to both TVRI and commercial stations,
most watch TVRI programs only obligatorily relayed on commercial
stations, such as the national news, world news or special
reports.

TVRI has been a target of criticism for failing to serve as a
public broadcaster that could walk the fine line between
providing a public service and the need to entertain.

Instead, it carries much of the baggage associated with the
ruling government. Many of its programs, which unsurprisingly
gain low ratings, are not attractive. As far as news and current
affairs programs are concerned, it fails to gain respect from the
public because of its tendency of having one-sided reports.

Under the 1997 Broadcast Law, TVRI's income is earned from TV-
set owners paying subscription fees and contributions from
private television stations' advertising revenues, as well as a
state budget.

Commercial stations, which first went to air in 1989, must
give 12.5 percent of their advertising revenue to TVRI.

However, the regulation does not work. The five private
stations owe TVRI Rp 118.58 billion, according to Yunus. RCTI's
debt is Rp 33.08 billion, TPI Rp 15.02 billion, SCTV Rp 31.91
billion, ANteve Rp 15.17 billion and Indosiar Rp 23.4 billion.

The minister said the broadcast law should be merged with the
press law to become one mass media law. Before the new law, both
private and state stations should be equal, he said.

Accordingly, TVRI should also stop collecting subscription
fees from TV owners.

Set up in 1962 to broadcast the Asian Games IV held in
Jakarta, TVRI is currently run under a foundation. A 1963
presidential decree states TVRI's source of income includes a
state budget, public fees and other sources, such as advertising.

In 1981, the government decided to freeze commercials on TVRI
in an effort to reduce consumerism and the negative impact of
commercials. The station relied totally on its state budget and
subscription fees from TV set owners.

Even though TVRI is allowed to air commercials, this is not
easy to do. As a public television station, it should find a way
to minimize the negative impact of ads on public broadcasting
services.

And time does not seem to be on its side. The economic slump
is affecting the whole market, including the country's
broadcasters and their commercial shares. The industry has seen
stations reducing air time and broadcasting reruns to prevent
further losses.

"The (advertising) cake is getting smaller. One or two
stations will fall unless they are subsidized and TVRI will not
survive," warned Yusca Ismail, chairman of the Association of
Advertising Agencies.

Quoting RCTI president director Andi Rallie Siregar during a
recent parliamentary hearing, Yusca said advertising expenditure
has dropped by 70 percent. "I think the situation is the same
with the print media and radio."

During the hearing, Siregar said television advertising
expenditure was recorded at Rp 821 billion in 1997 and at an
estimated RP 241 billion for the first five months of this year.

If the economic slump persists, advertising expenditure is
estimated to further decline to only 20 percent to 30 percent
from last year, and the industry will be in hot water.

Yusca cited TVRI's weaknesses in the areas of programming,
human resources and marketing as its biggest drawbacks. The
challenge is huge because it has to refurbish its image, improve
its low-rated programs, build a strong marketing team and upgrade
the civil-servant mentality of its workers.

Lots must be done before TVRI can reap commercial rewards.

Former TVRI deputy director RM Soenarto said, "TVRI should
first make its status clear. It must not be a foundation."

As a foundation, TVRI is not supposed to seek profits and it
is nontaxable.

An effort to change this status was put forward in 1976 by
then information minister Ali Moertopo. After two years of
studies, the TVRI completed a proposal for a possible change of
status.

The proposal included several possibilities for TVRI to become
a private enterprise or a general enterprise.

Soenarto, now a television program production consultant, said
the proposal was frozen and stored as files when Harmoko
succeeded Moertopo as information minister.

With its reputable Yogyakarta-based Multi Media Training
Center and extensive relations with foreign institutions such as
the Asian Broadcasting Union and the European Broadcasting Union,
TVRI has the potential to become a major station.

If TVRI is allowed to air commercials, it must compete with
private stations and this could motivate the station to work
harder to improve its image and become more professional.

Soenarto said that TVRI would be best separated from the
information ministry. "This move could minimize the image that
TVRI is a government arm."