The government is currently planning to formulate limited revisions to two government regulations within the telecommunications sector, specifically Government Regulation No. 52 of 2000 on the Organization of Telecommunications (PP 52/2000) and Government Regulation No. 53 of 2000 on the Utilization of the Radio Spectrum and Satellite Orbits (PP 53/2000). It is hoped that the revisions in question will encourage a fairer and more equitable business climate among Indonesia’s various telecommunications operators.
“These two regulatory frameworks were issued as an implementation of Law No. 36 of 1999 on Telecommunications,” explained Coordinating Minister for Economic Affairs, Darmin Nasution, after attending a coordination meeting which was held in Jakarta on Monday, 8 August 2016.
The revision of these two government regulations is seen as vital in order to support Indonesia’s industrial ecosystem. Ultimately, a more efficient telecommunications sector is envisioned, while the construction of new infrastructure and national telecommunications services will hopefully be accelerated. Compliance with the various regulations covering the sector and coordination between relevant stakeholders will also hopefully improve in the wake of the two revisions.
Minister Nasution further revealed that the revision of these two regulatory frameworks would mainly focus upon accelerating the construction of ongoing infrastructure projects within the country’s telecommunications sector. The Minister also expressed his hope that all of Indonesia’s regencies and cities would be online by 2019.
The fundamental principle underlying the current revision of these regulations is the government’s intention to ensure that each and every telecommunications operator can enjoy equal opportunities within the sector. Minister Nasution stated that the significance of providing a level playing field for providers would be to ensure equal network access for all Indonesians, especially for those living in less-developed islands. Thus the revision will ultimately engender healthy competition among the country’s telecommunications operators.
Minister Nasution further revealed that the revision of the two government regulations would focus primarily upon the construction and utilization sharing of backbone networks, as well as upon access to inter-operator networks. Minister Nasution further emphasized that any regulation of network sharing between telecommunications operators must be based upon the fairness principle, as well as definitive investment calculations.
“We can appoint independent auditors to calculate investment values and similar matters, while the mapping of backbone areas across Indonesia can be stipulated under a ministry regulation,” Minister Nasution asserted.
Commenting on this issue, Rudiantara, the current Minister of Information and Telecommunications, outlined the revision of the two government regulations in greater detail. According to Minister Rudiantara, the revision of PP 52/2000 is aimed at creating a more synergistic division of roles among various telecommunication network providers.
“As for the revision of PP 53/2000, this will focus upon the maximum utilization of the radio spectrum in order to support the development of a national broadband network,” asserted Minister Rudiantara.
Minister Rudiantara further asserted that the revision of the division of the various roles fulfilled by telecommunications network providers must be approved by the relevant ministries. Rini Soemarno, the Minister for State-Owned Enterprises and responsible for the supervision of the State-Owned Telecommunications Company, Telkom, asserted that her institution had no objections regarding the plan to revise the two government regulations. Indeed, Minister Soemarno voiced her broad agreement with any revisions which will introduce a fairer division of roles among the country’s various telecommunication operators. However, Minister Soemarno was also keen to point out the positive role that Telkom has played, as well as the investments that it has made.
“It is important to note that PT. Telkom has already made a significant contribution in terms of the dividends that it has returned to the government, as well as construction of considerable amounts of telecommunications infrastructure across the country. Thus, it is important to stipulate a fair division of roles and to utilize a specific calculation formula [with respect to PT. Telkom’s contributions],” Minister Soemarno asserted.
The government is currently planning to formulate limited revisions to two government regulations within the telecommunications sector, specifically Government Regulation No. 52 of 2000 on the Organization of Telecommunications (PP 52/2000) and Government Regulation No. 53 of 2000 on the Utilization of the Radio Spectrum and Satellite Orbits (PP 53/2000). It is hoped that the revisions in question will encourage a fairer and more equitable business climate among Indonesia’s various telecommunications operators.
“These two regulatory frameworks were issued as an implementation of Law No. 36 of 1999 on Telecommunications,” explained Coordinating Minister for Economic Affairs, Darmin Nasution, after attending a coordination meeting which was held in Jakarta on Monday, 8 August 2016.
The revision of these two government regulations is seen as vital in order to support Indonesia’s industrial ecosystem. Ultimately, a more efficient telecommunications sector is envisioned, while the construction of new infrastructure and national telecommunications services will hopefully be accelerated. Compliance with the various regulations covering the sector and coordination between relevant stakeholders will also hopefully improve in the wake of the two revisions.
Minister Nasution further revealed that the revision of these two regulatory frameworks would mainly focus upon accelerating the construction of ongoing infrastructure projects within the country’s telecommunications sector. The Minister also expressed his hope that all of Indonesia’s regencies and cities would be online by 2019.
The fundamental principle underlying the current revision of these regulations is the government’s intention to ensure that each and every telecommunications operator can enjoy equal opportunities within the sector. Minister Nasution stated that the significance of providing a level playing field for providers would be to ensure equal network access for all Indonesians, especially for those living in less-developed islands. Thus the revision will ultimately engender healthy competition among the country’s telecommunications operators.
Minister Nasution further revealed that the revision of the two government regulations would focus primarily upon the construction and utilization sharing of backbone networks, as well as upon access to inter-operator networks. Minister Nasution further emphasized that any regulation of network sharing between telecommunications operators must be based upon the fairness principle, as well as definitive investment calculations.
“We can appoint independent auditors to calculate investment values and similar matters, while the mapping of backbone areas across Indonesia can be stipulated under a ministry regulation,” Minister Nasution asserted.
Commenting on this issue, Rudiantara, the current Minister of Information and Telecommunications, outlined the revision of the two government regulations in greater detail. According to Minister Rudiantara, the revision of PP 52/2000 is aimed at creating a more synergistic division of roles among various telecommunication network providers.
“As for the revision of PP 53/2000, this will focus upon the maximum utilization of the radio spectrum in order to support the development of a national broadband network,” asserted Minister Rudiantara.
Minister Rudiantara further asserted that the revision of the division of the various roles fulfilled by telecommunications network providers must be approved by the relevant ministries. Rini Soemarno, the Minister for State-Owned Enterprises and responsible for the supervision of the State-Owned Telecommunications Company, Telkom, asserted that her institution had no objections regarding the plan to revise the two government regulations. Indeed, Minister Soemarno voiced her broad agreement with any revisions which will introduce a fairer division of roles among the country’s various telecommunication operators. However, Minister Soemarno was also keen to point out the positive role that Telkom has played, as well as the investments that it has made.
“It is important to note that PT. Telkom has already made a significant contribution in terms of the dividends that it has returned to the government, as well as construction of considerable amounts of telecommunications infrastructure across the country. Thus, it is important to stipulate a fair division of roles and to utilize a specific calculation formula [with respect to PT. Telkom’s contributions],” Minister Soemarno asserted.