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Telecommunications Development in Asia$
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John URE

Print publication date: 2008

Print ISBN-13: 9789622099029

Published to Hong Kong Scholarship Online: September 2011

DOI: 10.5790/hongkong/9789622099029.001.0001

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(p.269) 13 Indonesia
Telecommunications Development in Asia

John Ure

Hong Kong University Press

This chapter focuses on the economic reforms which opened the telecoms sector in Indonesia. The first reform came in 1989 with Law No. 3 allowing nine local companies to enter into BT (build-revenue-share-transfer) agreements known as PBH (Pola Bagi Hasil) with state-monopoly Telkom. After building out networks these nine companies transferred ownership to Telkom in return for a 70% share of the service revenues. Ministerial Decree No. 8/1993 for the first time allowed private new entrants to offer value-added services, such as paging and email, over circuits leased from Telkom.

Keywords:   economic reforms, telecoms sector, Indonesia, build-revenue-share-transfer, PBH, Pola Bagi Hasil, Telkom

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