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Telecommunication
In the sector of telecommunication, during the past year the Government continually carried out deregulation of the factors, which slow down investment, production, distribution and trade, and encourage telecommunications to be competitive and transparent by wiping out the practice of monopoly and unhealthy competition based on Act no. 36 of 1999 to replacing Act no. 3 of 1998.
In an effort to utilize the convergence of technology of telecommunication and information to support the economic sector, the government has formed the Telecommunication Coordination Team of Indonesia (TKTI) by Presidential Decree no. 50/2000. Hopefully this team can develop the telematics, progress and business competitiveness.
To support the implementation of Law no. 36 of the year 1999, effective as of September 2000, the Government is preparing the supporting regulations. The Government regulations being prepared include Government Regulation of Interconnection, Government Regulations of Frequency and Satellite Orbit, Cyber Law and Government Regulation on the Implementation of Telecommunication, besides the regulation on tariff and network interconnection and long-term completion in connection with KSO. To support the implementation of competitive telecommunication, PT. Telkom and PT. Indosat should restructure their business by reducing the joint ownership in a number of affiliate companies. To increase transparency, the government will also carry out special audit to PT. Telkom.
The number of fixed-line customers at the of 2001 totalled 7.2 million. It means the country’s teledensity was around three (3) percent. At the same time the number of people who have gone wireless totalled 6.57 million, almost double the 3.67 million users in 2000. In 1996, the number of users was just 567,000.
It is believed that cellular phone users will soon out number fixed-line customers.
