'TVRI', 'RRI' to be self-financed

JAKARTA (JP): The state television station TVRI and radio station RRI will have to make profits and finance their expenditures in three years, following the closure of the information ministry.

State Minister of Administrative Reform Freddy Numberi, after a meeting with TVRI director Chaerul Zein and RRI director Suryanta Saleh, said on Friday that during the transitional period the two state institutions would be transformed into state companies which still enjoy government subsidies.

"The decision is final," Freddy said, adding that the government would issue a decree which will give new status to the two broadcast stations and their employees.

Both TVRI and RRI fell under the auspices of the ministry of information before President Abdurrahman Wahid decided to dissolve the ministry last month. Also liquidated was the ministry of social services.

Nationwide protests from employees of the two ministries followed, but Abdurrahman confirmed last week that his decision was unchanged.

The President said that the closure was part of the administration's drive to streamline the cabinet and to delegate more power and tasks to regional administrations as mandated in the new regional autonomy law.

Critics claim that the two broadcast media have long served as the government's mouthpiece.

Freddy said that during the next three-years, TVRI and RRI would still have to broadcast government news. "Despite its new form, the two stations will not be separated from the government," he said.

He said TVRI would be allowed to air commercials when becomes a fully self-financed company in 2002.

"Commercials will be the most possible source of funding to run the company," Freddy said.

TVRI first went on air in August 1962. Initially it aired advertisements, but the government then banned it from airing commercial breaks in 1981 on the grounds that it could spark a consumptive lifestyle.

Since then TVRI has relied on government subsidy and mandatory contributions from private television stations who are required to "donate" 15 percent of their commercial revenue to the state- run station. (04)