Devi Asmarani, Jakarta – Indonesia's state-run television station, TVRI, yesterday officially became a state-owned company, a status that will give it more commercial freedom and help it stay viable in competition with private stations.
The change of status from a social service corporation into a limited liability company will likely bring in the much needed cash for the ailing station, as TVRI will now be allowed to air advertisements along with its competitors.
This will also dispel speculation in the past few weeks that the country's oldest station, which has functioned as the government's main communication channel with the population, would fold.
Last year, TVRI struggled to stay afloat after the government cut subsidies. The station had no other sources of revenue as it was only allowed to run limited advertising.
The change of status was made during the signing of two ministerial decrees yesterday by Deputy Minister of State Enterprises Roes Aryawijaya.
Mr Roes said the change of status would help the station be more competitive with the existing nine private TV stations in the country. A new board of directors was also announced to replace the old one, which has been torn by infighting.
The station's president, Sumita Tobing, who was behind the push to commercialise, was replaced by Hari Sulistoyono, who previously headed the now defunct news Internet portal Lippostar. Among the new directors is prominent banker Enny Hardjanto, who was named director for news and programming.
TVRI's 23 regional stations across the country have struggled, including those in North Sumatra, Aceh and Lampung which went off air because of high operational costs and mounting debts. The TVRI station in Medan, North Sumatra, last week went back on air after a cash injection by the provincial government.
The required independent audit the station had to go through to complete the process of status conversion had been blocked by some executives, who accused their boss Sumita Tobing, a veteran TV producer for several private stations here, of running a one-woman show.
Ms Sumita and four of her directors, who had been suspended in the past few months, publicly exchanged accusations of corruption and wooed politicians to take their sides.
Media observers said saving the station would benefit the government, as the station has the widest reach in the country, with its large network of transmitters and relay stations.