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Private and state-owned Big Contributors for Development of Telematics

Wednesday, September 21, 2011




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Secretary of the Coordinating Minister for Economic Affairs, Eddy Aburahman mentioned, the private sector and State Owned Enterprises (SOEs) have contributed a lot in the development of telematics infrastructure, both for the network backbone and access networks. This has been done over the past two decades.

 "During that time their business activities (private and state enterprises) have absorbed no small investment," said Eddy in Indonesia at Broadband Forum: Navigating ICT for the Economy, in Jakarta, Wednesday (21/09/2011). According to Eddy, based on several sources of data are available, investment in capital expenditure could reach 6 billion dollars per year.

Therefore, along with substantial capital needs for infrastructure development, the government has made funding schemes in the form of universal service obligation (USO). With this scheme, the telecommunications networks and telecommunications services shall contribute by giving 1.25 percent of total gross revenues of the company. "The program then focused on the development of telecommunications infrastructure in rural areas, border areas, and isolated," said Eddy.

 In addition to USO, the government in this case the Ministry of Communications and Information Technology, Ministry of Finance and Bappenas are in the finalization stage of the ICT Fund funding scheme. According to Eddy, taking into account the funding schemes in some developing countries, like Pakistan, India, and Malaysia, the government was able to improvise against the optimistic scheme.

"I really hope we are not complacent with the phenomenon of 'It's easy to collect but Difficult to Spend' which will dampen our steps to achieve satisfactory results," said Eddy.
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