Indonesia’s policy to put an end to Telkom’s monopoly of the local telecommunications sector is fundamentally correct. However, there is much to say about the policy’s implementation. A number of parties are already feeling the pinch and are reacting accordingly.
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There is no doubt that the government is unprepared for the fundamental changes sweeping across the country, such as regional autonomy, privatization of state-owned enterprises (SOEs) and the abolishment of monopolistic practices. The government appears hesitant to abolish monopolies held by SOEs or certain private companies. This is made plain in the privatization of electricity supply and the plan to accelerate the elimination of Telkom’s
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