Rule Change in DKI Jakarta Has the Potential to Increase Internet Tariffs

Internet Network Tariffs

The revision of Regional Regulation No. 8 of 1999, regarding the Integrated Utility Network Facility (SJUT), which is being discussed by the Provincial Government of DKI Jakarta, has the potential to increase internet tariffs in the capital. One of the articles in the regulation could be the cause of the tariff increase.

This article is 4 D, which requires SJUT operators to pay routine utilization rates every year.

If this rule is implemented, it will have an impact on public subscription rates, be it electricity, water, gas, and internet tariffs in Jakarta.

The general chairman of the Association of Indonesian Internet Service Providers (APJII), Muhammad Arif, also conveyed this potential increase. He said the policy could lead to an increase in internet prices in Jakarta because the cost of deploying them rose.

According to him, the burden of the rental fee forced internet service providers to readjust their service prices.

In another hand, the General Chairperson of the Telecommunications Network Operators Association (Apjatel), Jerry Mangasas Swandy, said that the change in the rules has the potential to hamper the digital transformation program being carried out by President Joko Widodo (Jokowi). Therefore, he hopes that the revision of the SJUT regional regulation will not add to the burden on the public.

It is known that there are around 40 telecommunications operators in Jakarta that deploy telecommunications networks. Jerry ensures that the price of internet services in DKI Jakarta will increase if the provincial government applies the SJUT rental price based on a business approach and increases local revenue.

Dozens of telecommunications operators have been in dialogue with the DKI Jakarta Provincial Government since 2019. However, Jerry noted that there has been no common ground between Jakpro and the telecommunications network operator represented by Apjatel.

Meanwhile, according to him, the draft revision of regional regulations sent by the Regional Regulation Formation Agency (Bapemperda) still contradicts existing regulations.