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YLKI accepts lower smaller increase in call rates with conditions

| Source: JP

YLKI accepts lower smaller increase in call rates with conditions

JAKARTA (JP): The Indonesian Consumers Foundation (YLKI) said
on Friday it would accept the government's latest plan to roll
back the 24 percent rise in domestic telephone rates to 15
percent, on the condition that state-owned PT Telekomunikasi
Indonesia (Telkom) improves its transparency and efficiency.

YLKI Executive Director Zoemrotin K. Susilo said the
foundation would put a hold on its boycott plan to see if the
telecommunications provider would meet its requests.

"We would like to see if our demands are fulfilled and, if
not, we will fight again to make Telkom cancel the increase
outrightly," she told The Jakarta Post.

After a few weeks of public furor and threats to boycott phone
use over its 24 percent rate rise, introduced on Feb. 1, Telkom
finally bowed to pressure, reducing the increase to an average of
15 percent on local calls.

The most significant change was the reestablishment of a
single tariff for the greater Jakarta area and Bandung,
irrespective of the distance of the call, by abolishing the Zone
III call category.

The initial tariff increase effectively raised phone charges
in Jakarta and Bandung by more than 20 times, as calls over a
distance exceeding 30 kilometers were subject to long-distance
rates.

The decision was made on Thursday night at a meeting between
Communications Minister Giri Suseno Hadihardjono, Telkom
directors and members of the House of Representatives.

The Zone III category, imposed in the greater Jakarta area and
Bandung areas, set off the strongest furor because it effectively
raised call rates by up to 3,000 percent for calls made during
busy hours to a distance of between 30 kilometers to 200
kilometers.

Under the revised tariff scheme, local call rates were raised
by 17.24 percent to Rp 170 (2 U.S. cents) from Rp 145 per pulse
(three minutes) domestic long distance rates by 16.07 percent to
Rp 130 from Rp 112.

The monthly subscription charge rises by 7.9 percent.

The charge at public telephone booths remains at Rp 100 per
pulse and magnetic card telephone rates are raised by 13.33
percent to Rp 170.

One pulse lasts from seven seconds to up to three minutes
depending on the distance of the phone call and the time the call
is made.

Telkom President Asman Akhir Nasution said on Friday the
lower-than-planned increase in phone rates would force the
company to reduce spending on operations and maintenance.

Nasution said this would also affect its plans to extend
telephone coverage into rural areas.

"Almost 90 percent of the cost of maintaining our equipment is
dollar denominated," he told reporters.

YLKI also urged Telkom to increase transparency by making
public the details of its joint operation schemes to expand the
country's telecommunications infrastructure, also known as the
KSO programs.

Many critics have blamed Telkom's inefficiency on charges that
most of the KSO operators were given contracts because of their
close relations with powerful figures rather than their
capability.

Nasution, however, dismissed the allegations, contending that
inefficiency had nothing to do with Telkom's decision to raise
its tariffs.

"The rate rise is not because of KSO. Like any business
entity, Telkom simply has to grow," he said.

Zoemrotin also urged Telkom to include details of local calls
in its monthly bills to subscribers to improve the transparency
of its billing system.

Currently, the monthly phone bill itemizes only long distance
calls. (02/das)

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