Devi Asmarani, Jakarta – Indonesia's longest-running television station is struggling to stay on the air with depleting financial resources, and there are calls to commercialise the station.

The state-owned Televisi Republik Indonesia (TVRI), established in 1962, may fold in one or two years if no drastic action is taken, its director Sumita Tobing warned. "There are only two options – declare bankruptcy or keep it alive," she said.

Privatisation would allow TVRI to air commercials to boost earnings and revive its dying popularity, she said. TVRI is financed with the state budget and receives a 12.5-per-cent share of the gross revenues of the country's six private television stations.

But since the economic crisis, some private TV stations have not been able to pay their dues. This leaves 150 billion rupiah (S$27.56 million) in government subsidies a year as TVRI's main financial resources. Ms Sumita said the subsidy covers only around 10 per cent of the total operational cost.

TVRI needs at least two trillion rupiah to rejuvenate its old equipment, some of which no longer function, she added. It also needs at least 800 billion rupiah a year to operate.

Ms Sumita took over the helm last June after much experience in several private TV stations. She has asked the government to turn the station into a limited company. TVRI became a state-run company when the Ministry of Information, under which it used to operate, was dissolved last year.

Ms Sumita's proposal has received some support in Parliament. In a hearing last Thursday, some legislators called on the government to privatise the station to lift the burden on the budget. Mr Effendy Choirie of the National Awakening Party, said: "Selling it to the public will stop the losses." But others were concerned that this would make the station completely commercialised, and that it would abandon its social mission.

TVRI has the widest reach in the country with 400 relay stations across the archipelago. However, its viewership has been dwindling in urban areas, where many private stations offer stiff competition.

Although TVRI has vowed to be an independent public service broadcasting station, it is still largely seen as a government mouthpiece. Its variety shows also lack the modern appeal of programmes broadcast by private stations. But about 70 per cent of TVRI's audience live in the rural areas, where the private TV channels are harder to pick up.

Ms Sumita said TVRI is burdened by its outdated equipment and employees with a complacent "civil servant" mentality. Only 10 per cent of its 7,200 employees are productive, she said.