Basic Telephony Services through Fixed Networks - Tariffs

The Minister of Communication and Information has issued Regulation No. 15/PER/M.KOMINFO/4/2008 to facilitate the implementation of Government Regulation 52 of 2000. The Regulation includes Attachments that set out the requisite formulas for any tariff calculations envisaged in the Regulation.

The basic tariff structure includes:

·                activation fees;

·                monthly subscription fees;

·                usage fees; and

·                additional facilities fees.

Each of these fees is then further elaborated in the Regulation. For example, usage fees include:

·                on-net local;

·                off-net local;

·                off-net local cellular;

·                off-net long distance cellular;

·                on-net long distance;

·                off-net long distance;

·                international; and

·                satellite.

The formulas for calculating all tariffs are included in Attachment I. The other Attachments are in essence standard forms that are to be completed in order to comply with the provisions of the Regulation, particularly as those relate to reporting.

The Indonesian Telecommunication Regulatory Authority (Badan Regulasi Telekomunikasi Indonesia / BRTI) is to be the authority that is generally responsible for supervision and is the authority that is to receive all reports relating to compliance by providers. For example, providers are required to notify the BRTI within 5 days of implementing a new tariff structure. This notification must include a comprehensive list of all data used in making this calculation.

The Regulation permits providers to bundle products in order to sell them. However, any bundling must be transparent and fair. In this case fair means that the total cost of the bundled products cannot exceed the cost of their constituent parts.

Any provider that intends to modify its tariff structure and these modifications impact on the amount paid by end users, then the provider is under an obligation to socialize these changes to users. The Regulation lists how this socialization obligation can be fulfilled.

The Regulation has been in force since 30 April 2008.