Opposition to Astro Network heats up
State minister for communication and information Sofyan Djalil has the bussiest days in office in the last few months dealing with public pressures. First on the massive protest on the plan to publish Indonesian edition of Playboy. And then the implementation of new regulations on airwaves and broadcasting which are considered threatening the press freedom.
In the last few days, the ministry have to deal with the pressure to close down the broadcasting license of Global TV, a network previously owned by an Islamic organization for educational purpose but later on sold to PT Bimantara Citra Tbk with completely different programs, mainly entertainments.
Almost at the same time, pressure mounts on direct to home (DTH) service of Astro All Asia Network Plc subsidiary. Today, deputy coordinator for working group on information and communication at The House (DPR) Commission I Dedy Djamaluddin Malik urge government to put on hold Astro's services until the company abide the Broadcasting Law and the regulation on communication satellite.
DPR is scheduled to summon the minister for communication, Astro management, and former director general for post and telecommunication Djamhari Sirat.
DPR believes there are two pending issues that should be settled before the Malaysian giant start to deliver services to Indonesian customers.
First on the regulation foreign ownership in broadcasting which set the limits of maximum 20% foreign shares. Astro All Asia Networks Plc and Lippo Group of Indonesia entered into a joint venture company to provide multi-channel satellite pay-TV and multimedia services in Indonesia in March 2005.
The joint-venture company, PT Astro Nusantara, have an initial paid-up capital of US$30 million, of which ASTRO hold an effective 51% share with the balance held by PT Broadband Multimedia Tbk of the Lippo Group. ASTRO also provides shareholder loans of US$35 million repayable on the third and fourth anniversary of the loan drawdown.
Peak funding is estimated at US$200 million after four years of operations and the additional funding of US$135 milion is expected to be raised through a combination of third party loans, and equity and quasi-equity instruments.
"Astro holds 51% in Direct Vision. This is a violation to the Broadcasting Law No. 32/2002," Malik said.
ASTRO listed on Bursa Malaysia in October 2003. Major shareholders of the Group include the Usaha Tegas Group (42.7%) and Khazanah Nasional Berhad (21.6%), the investment arm of the Malaysian Government.
Second, the issue of landing rights. Parliament believes Astro violates the regulation on landing rights as no reciprocal agrement between Malaysia and Indonesia on satellite communication services.
Whatever the verdict will be, Indonesia as the most populous country in South East Asia clearly a potential market. With only 1% of its population subscribes pay TV services, Indonesia indeed one of the most attractive market for companies like Astro.
In the last few days, the ministry have to deal with the pressure to close down the broadcasting license of Global TV, a network previously owned by an Islamic organization for educational purpose but later on sold to PT Bimantara Citra Tbk with completely different programs, mainly entertainments.
Almost at the same time, pressure mounts on direct to home (DTH) service of Astro All Asia Network Plc subsidiary. Today, deputy coordinator for working group on information and communication at The House (DPR) Commission I Dedy Djamaluddin Malik urge government to put on hold Astro's services until the company abide the Broadcasting Law and the regulation on communication satellite.
DPR is scheduled to summon the minister for communication, Astro management, and former director general for post and telecommunication Djamhari Sirat.
DPR believes there are two pending issues that should be settled before the Malaysian giant start to deliver services to Indonesian customers.
First on the regulation foreign ownership in broadcasting which set the limits of maximum 20% foreign shares. Astro All Asia Networks Plc and Lippo Group of Indonesia entered into a joint venture company to provide multi-channel satellite pay-TV and multimedia services in Indonesia in March 2005.
The joint-venture company, PT Astro Nusantara, have an initial paid-up capital of US$30 million, of which ASTRO hold an effective 51% share with the balance held by PT Broadband Multimedia Tbk of the Lippo Group. ASTRO also provides shareholder loans of US$35 million repayable on the third and fourth anniversary of the loan drawdown.
Peak funding is estimated at US$200 million after four years of operations and the additional funding of US$135 milion is expected to be raised through a combination of third party loans, and equity and quasi-equity instruments.
"Astro holds 51% in Direct Vision. This is a violation to the Broadcasting Law No. 32/2002," Malik said.
ASTRO listed on Bursa Malaysia in October 2003. Major shareholders of the Group include the Usaha Tegas Group (42.7%) and Khazanah Nasional Berhad (21.6%), the investment arm of the Malaysian Government.
Second, the issue of landing rights. Parliament believes Astro violates the regulation on landing rights as no reciprocal agrement between Malaysia and Indonesia on satellite communication services.
Whatever the verdict will be, Indonesia as the most populous country in South East Asia clearly a potential market. With only 1% of its population subscribes pay TV services, Indonesia indeed one of the most attractive market for companies like Astro.
Labels: Bimantara, Khazanah, LIPPO
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