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    The Telecommunication Tariff War in Indonesia is Still Reasonable

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    BANDUNG-Competition in the telecommunications industry is very tight today. Indonesia is known as one of the countries with very competitive telecommunication rates.

    Chairman of KPPU, Syarkawi Rauf explained tariff war is a regular phenomenon in market mechanism. Operators compete to offer various tariff schemes that are considered able to boost sales and market domination. Cheap tariffs, is one of the operator's strategy to capture consumers who are sensitive to tariffs.

    "The more efficient the company, the greater its ability to offer competitive tariffs, and because the company's efficiency capabilities vary, it causes the emergence of various tariffs in the market, which is the choice of consumers," said Syarkawi in his official statement in Bandung, Tuesday (25/7/2017 )

    Tight competition occurs in all telecommunication services provided by operators, such as voice telecommunication services, SMS, data communications services and other telecommunication services.

    In the latest developments, there are parties who argue that the current competitive conditions, considered unhealthy and harm the telecommunications industry.

    "Especially in data communication services, where the tariff offered by operators is considered low so that it harms the operator," he said.

    In fact, syarkawi continued, telecommunications company encourage the government issued a policy limitation tariff data communications services through the establishment of lower limit tariffs.

    "The lower tariff policy for the industry in the long term will be bad for the national economy as a whole," he concluded. (MAT)

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