'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."