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

'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)