VIVAnews - The Minister of Communication and Information, Muhammad Nuh, said that the government will push for internet rate decrease to assist internet market growth in Indonesia.
"I'll make sure that the internet rate will be decreased this year," said Nuh when interviewed by VIVAnews in Jakarta, on Thursday, Feb. 19.
When asked for confirmation on the details, Nuh asked the reporters to ask the Directorate General of Post and Telecommunication regarding on the details of the timing and the size of the decrease.
Nuh emphasized that the high internet rate is caused by expensive investment value yet a small internet market. To lower the rate, the minister will issue a supportive policy.
At the present, Indonesia's internet rate is relatively expensive compared to other countries. The high rate is caused by the inadequate internet infrastructure. The cheapest subscription rate is around Rp 100,000 (US$8.41) per month from a cellular operator.
But with the rapid network development by telecommunication operators, internet rate is expected to be lower. One cause that will push the rate lower is the Palapa Ring development project which is funded by the Palapa Ring Consortium. The Consortium's member are PT Telkom, PT Indosat, PT Excelcomindo Pratama, and PT Bakrie Telecom.
The Palapa Ring Project will need US$ 180.4 million of investment for a 4,450 kilometer long network and consists of 3,850 kilometers of underwater cable and 600 kilometers of inland cable. The network will go through 21 cities and regencies in the eastern part of Indonesia.
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Translated by: Ariyantri E. Tarman
