Indonesia: Government to resume rural phone development

11 August 2004 – According to a report from the Organisation of Asia-Pacific News Agencies, the Indonesian government will roll-out a rural telecommunications service using funds from the universal service obligation (USO) scheme beginning this August, an official said here Tuesday.

The Finance Ministry has agreed to the allocation of Rp45 billion from the state budget for USO development, Director General of Post and Telecommunication Djamhari Sirait said.

The government installed rural telephone networks in 3,010 villages at a cost of Rp45 billion in 2003 and plans to expand its efforts to an additional 3,000 villages in 2004.

Susilo Hartono, Telecommunication and Information Director of the Directorate General of Post and Telecommunication said 43,022 villages, 64.4% of the 66,778 villages in Indonesia, do not have telephone service. The government, he said, will complete rolling out phone lines to all remote villages by 2010 for a total cost of Rp2.14 trillion.

[1 US$ = 9,172.40 Indonesian Rupiah]

Intelecon Research & Consultancy Ltd. 11/08/2004

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