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House hearing on broadcasting issue
Niken Prathivi , The Jakarta Post , Jakarta | Mon, 09/08/2008 10:58 AM | Sports
The House of Representatives has summoned local Pay-TV company AORA to Wednesday's session regarding allegations of illegal moves on broadcasting permits, according to a House member.
Member of Commission 1 with the House, which oversees communication and information affairs, Joko Susilo told The Jakarta Post on Sunday that the House would question AORA about allegations that it may have violated broadcasting law and government regulations covering private broadcasting companies.
AORA, the satellite pay television service of PT Karyamegah Adijaya, commenced nation-wide broadcasting in August with a 10 channel introductory package,
Accusations of violating the broadcasting code arose when it secured broadcasting rights on English Premier League matches from ESPN Stars Sports, the deal being made last year.
"PT Karyamegah Adijaya, as the owner of AORA, has purportedly pocketed a false consent regarding its broadcasting service. AORA may also have breached the business code of ethics relating to English Premier League broadcasting rights," said Joko.
Dinar Hanggarani, spokesperson of AORA, said through an sms text to The Post that they had not received the summons letter and she could not comment yet on the planned House hearing.
A recent release from ESPN said: "the decision to award the English Premier League rights to AORA was made after expressions of interest had been sought from all existing and new licensed-Pay-TV operators in Indonesia and discussions held with a number of interested parties."
Joko explained that the allegations were based on complaints from the Press and Broadcast Society of Indonesia (MPPI), which claimed that AORA had allegedly acted illegally in reshuffling Karyamegah's shareholdings after it received its broadcasting permit from the ministry of technology and information.
PT Karyamegah reportedly received the permit last September. However, the company then announced share transfers to a number of parties including, Solihin J. Kalla and Jeffrei Geovanie, PT Arono International and PT Indonesia HGC Telecommunication on Nov. 28 2007, Antara reported.
A day later, PT Karyamegah amended its announcement, saying that it had transferred the shares to PT Arono International and Jeffrei Geovanie.
Joko sees the shares handover as akin to violating the law.
"The reshuffle means that there has been a handover activity in relation to a permit, which is prohibited by broadcasting law" said Joko.
"So, we will also invite to the gathering the MPPI as the plaintiff, as well as the Indonesian Broadcasting Commission (KPI) and the ministry of information and technology as the broadcasting permit issuer."
Concerning business ethics, Joko alleged that PT Karyamegah may have acted feloniously in relation to PT Direct Vision, which initially held the broadcasting rights for three years starting in 2007.
"AORA abruptly took over the broadcasting rights after PT Direct Vision had to cancel its service following monopoly allegations from the KPPU. In business, such a thing is inappropriate," he added.
KPPU, is the independent commission that supervises business competition.
Based on its conduct on permits and ethical issues, Joko said PT Karyamegah might have carried out permit scalping, which could lead to suspension of the AORA license, or its withdrawal from the business sector.
PT Karyamegah president director Ongki P. Soemarno said in a statement sent to The Post that changes in shareholdings did not constitute transfer of a permit.
