By: Mohammad Irfandi )*
Behind the excitement about the use of mobile phone that offers a variety of exciting promotions, there is apparently a less favorable impact assessed for the Indonesian government. The revision of Regulation 52 of 2000 on the operation of telecommunications and Regulation 53 of 2000 on the use of radio frequency spectrum and orbit satellite by Ministry of Communications and Information Technology (Kemenkominfo) initially for the efficiency of the telecommunications industry, but behind the revision, it triggers cellular tariff war ,
Ahmad Alamsyah Saragih, Commissioner Ombudsman, found two PP revision would create inefficiencies that could potentially lead to a multiplier effect for the telecommunications industry that could harm the state’s finances and could lead to mal-administration with their tariff war between telecom operators. Alam look at indications of a price war between telecom operators have started to appear on the promotional rates that they incur. If the government continues to allow the practice of this promotion, the potential revenues from VAT will be lost. To that end, the Commission should be able to check the telecom operators are doing this tariff war, because there is a potential loss to the state, so the Commission could examine the practice of price wars that harm the country.
On the other side, Justin Prastowo, Executive Director of the Center for Indonesian Taxation Analysis (CITA), said that in addition to the Commission, the Commission and the Directorate General of Taxes also can quickly check the telecom operators who do fare war. For a price war conducted by the telecom operators leading to predatory pricing that could potentially reduce state tax revenues. When operators sell their products at prices below the cost of goods sold then it would make the operator losers. If you lose, then the operator not paying taxes. As a result, the state cannot do in public spending. According to Justin, the actual loss is a result of predatory pricing by the public at large.
Meanwhile, Leonardo Henry Gavaza CFA, an analyst at PT Bahana Securities, said the revision of the two PP was created for competition and price competition among operators of telecommunications providers. For example, some time ago, XL Axiata sale issued Rp 59 per minute for inter-operator telephone rates. Previously, Indosat Ooredoo issued a promotional fare of Rp 1 per second for inter-operator telephone rates. In addition to issuing a promotional fare, Indosat and XL also issued a package of talk among operators which are sold under the cost of production. The subsidiary issued Ooredoo phone packages to all operators with a quota of 600 minutes a month cost Rp135.000 or Rp225 per minute.
With the potential multiplier effect for the telecommunications industry is considered to be detrimental to the country’s financial and can lead to mal-administration with their tariff war between telecom operators, reasonable if it arises urging the Corruption Eradication Commission (KPK), the Business Competition Supervisory Commission (KPPU), and the Directorate General of Taxation (Taxation Office) of the Ministry of Finance to immediately intervene to prevent state losses due to cellular tariff war. If this situation is quickly dealt with by the parties involved, the potential loss will increasingly be suppressed. Therefore, the Indonesian government is expected to soon realize the impact of mobile fare wars and people are asked to worry about remembering this war only happens at the level of the administration of the operator, so as not to impact on the availability of telecommunications services in Indonesia.
)* Indonesia’s Political and Economy Observer
