Government To Go On With New Telephone Tarifs

                       Jakarta, Kompas Online 

                       The government has decided to pursue the new
domestic telephone
                       tarifs at an average increase of 24 percent starting
February 1 1999.
                       There will also be no change in local connection -3
(connection from
                       central station spanning more than 30 kilometers) in
the area
                       Jakarta-Tangerang-Bekasi (Jatabek). Here tarifs will
be equivalent to
                       long distance (SLJJ) zone I tarifs.

                       The Director General of Post and Telecommunications,
Sasmito
                       Dirjo, stressed this information in a press meeting
in Jakarta,
                       Monday, (22/2). He issued this terse statement in
connection with
                       numerous reactions from the public who are driving
at a deferment in
                       view of the economic condition which does not foster
this government
                       measure.

                       Meanwhile, a representative of the House in
Commission VIII,
                       regretted the fact that a colleague of Commission IV
- who happened
                       to join the Telkom force - did not seem to
understand the aspirations
                       of the people.

                       "Commission IV could agree with the increased
telephone tarifs, but
                       it should also have considered the feasibility of
the tarif increase,"
                       said the House member who preferred not to be
identified.

                       "I'm afraid that it would hurt the respective
member," he said. 

                       Impossible 

                       Sasmito said meanwhile, that the 24 percent increase
of telephone
                       rates can no longer be delayed, as it had repeatedly
been cancelled.
                       The decision is part of a long term strategy in
order that PT Telkom
                       could provide telecommunication service to the public.

                       "If it is deferred again, it would be the same as
prolonging a problem.
                       According to the government, February 1999 should be
the right
                       moment to implement the decision. We have been very
careful and
                       considered public aspirations. Discussions were held
with most
                       parties including Parliament. If it is going to be
deferred until after the
                       Election and after the General Assembly, its purpose
might be of no
                       effect," said the Director General.

                       As to the local-3 connection (above 30 km) for the
Jatabek region
                       which is equivalent to SLJJ Zone I tarifs, Sasmito
explained that
                       government wanted to introduce an even tarif
distribution in all
                       regions.

                       "We cannot give the Jatabek region a special
treatment which has
                       been enjoying local tarifs at local-3 connections,"
he said.

                       According to the Director General, government wanted
to implement
                       this rule in 1995, connections from central
exceeding more than 30
                       kilometers up to 200 kilometers, were to be effected
with zone I long
                       distance tarifs. This rule is in effect in all
regions of Indonesia, except
                       for a part in the Jatabek area which was not ready
yet. For this
                       reason, the decision will take effect simultaneously
on February 1
                       1999 in Indonesia and part of Jatabek will be
affected by the decision.

                       The government did request PT Telkom to consider
public interest
                       before tarif local-3 became effective. "Calls below
a distance of 30
                       kilometers should not be effected by SLJJ tarifs.
This applies only to
                       distances over 30 kilometers.

                       The following is a sample, connection Tangerang
(021) - Bekasi (021)
                       spanning a distance of 50 km, will be effected SLJJ
zone I tarif. While
                       a call from Semarang (024) - Demak (0291) spanning
only 26
                       kilometers, will be effected a local tarif. Calls
from Cibinong (021) -
                       Bogor (0251) 16 kilometers only will be effected
local tarifs.

                       "We want to treat our customers fairly with the
installation of local-3
                       connections in the Jatabek area," added the Director
General.

                       As to billings and accounts, Sasmito said that
Telkom will start
                       preparations in one or two days. It is expected that
Telkom will
                       promptly have a study ready.

                       Telephone customers expected to make use of local-3
tarifs will be
                       below 25 percent, according to Sasmito. (*) 
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