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)