Political Interconnection in the Operation of Digital Terrestrial Free-To-Air Television Broadcasting

Policy & Governance Review, Volume 2, Issue 1, January 2018 Policy & Governance Review Volume 2, Issue 1, January 2018 (14-28) ISSN 2580-3395 (Print), 2580-4820 (Online) doi: 10.30589/pgr.v2i1.69

Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting

Rahayu •

Abstract Agent(s) role in the implementation of policies is frequently considered as the determining factor for the success of policy implementation. This is reflected quite clearly in the “principle- agent” theory that describes how self-interested agent influences the implementation process. However, is self-interested agent still relevant in explaining Indonesia’s broadcasting policy implementation? What if policy implementation involved many actors with their respective personal interests? How will agents position themselves amidst numerous personal interest- bearing actors? By using the political economy approach, this research aims to reveal the role of agents in the constellation of actors’ relation to Indonesia’s broadcasting policy implementation. The operation of digital terrestrial free-to-air television broadcasting case is used to provide a reflection of agents’ position and political behavior in responding to the interest among actors. This research was conducted using the qualitative approach by implementing the data collection technique through in-depth interviews and document analysis. The research result shows that broadcasting policy implementation is not merely influenced by a self-interested agent but is also influenced by political interconnection and multiple-principles’ political-economic interest.

Keywords: policy implementation; broadcasting; political economy; agent; multiple-principles.

Introduction change in Indonesian broadcasting. The 1998 political reform has provided In the Broadcasting Law, the path an opportunity for reformists defenders of to realizing democratic and decentralized democracy to establish democratic institutions broadcasting has been made quite clear. This for supporting change into a better-improved course is explicitly stipulated in both the course of order (Crouch, 2010). In the context consideration section and main body of the of television broadcasting in Indonesia, this Broadcasting Law. In the considerations, the reform has driven changes in the television objective of broadcasting operation is explicitly broadcasting system, from one that was formulated, of which among others are: to authoritarian and centralistic into one that guarantee the citizens’ right of convey their is democratic and decentralized (Pandjaitan opinions and obtain information, to achieve & Siregar, 2003; Siregar, 2008). One of the public welfare in utilizing radio frequency manifestations of this change was the advent of spectrum as a limited natural resource, to Broadcasting Law number 32 of 2002, which is maintain diversity of the Indonesian people, often considered to be a milestone of political and to implement regional autonomy. The

• Department of Communication Sciences, Faculty of Social and Political Sciences, Universitas Gadjah Mada Email: [email protected]

14 Rahayu, Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting main body of the Broadcasting Law has also why was a policy that contradicts the mandate regulated and acknowledged the presence of the law made? Did agents have a self-interest of four types of broadcasting organization in that incidence and if so, what is their self- (public, private, community, and subscription interest? What is the response of the legislative broadcasting organizations) to guarantee as the branch responsible for monitoring the diversity of contents and voices. The law executive, or the response of the Indonesia contains regulation that prevents business Broadcasting Commission in this case as the monopoly and provides specifications on public’s representation? Even further, the the distribution of authorities among the researcher would like to explore the issue broadcasting regulatory institutions. of political interconnectivity between actors Despite the stipulations having been and their interests in the operation of digital explicitly written in the Broadcasting Law, a television broadcasting. number of people, particularly broadcasting Based on literature review results, it activists and civil society organizations, seems that studies on policy implementation concerned with broadcasting issues in have yet to touch on the roles and interests Indonesia (such as: Armando et al., 2011; among actors. Initial studies on implementation Nugroho et al., 2012; Judhariksawan, 2013; were inclined to observe policy implementation Rianto et al., 2014; Heychael et al., 2014). They from the administrative procedure aspect said, the implementation of the said law is not (Pressman & Widavsky, 1973). Scholars in in accordance with the objective of the law. A this stage (such as van Meter & Horn, 1975, case that is quite controversial relates to the p. 462-476; Sabatier & Mazmanian, 1980) Regulation of the Minister of Communication view the issue of implementation being and Information Technology on the operation caused by problems such as uncertainty of of digital terrestrial free-to-air television policy aspect, bureaucratic issues, low level broadcasting. Several objections in relation to of implementer reliability, and influence of the omission of the Indonesian Broadcasting societal surroundings. Implementers tend to be Commission’s (Komisi Penyiaran Indonesia – KPI) viewed as neutral and act based on rationality authority to manage digital broadcasting, the (Schofield, 2004; Matland, 1995). change of broadcasting system that caused the In the following development, switch off from analog to digital, the advent of studies were found to be dominated by the new broadcasting institution called multiplex assumption that implementers have control broadcasting service institution that has the over implementation as they are regarded to authority to lease frequencies, and biased be closer to and understand the actual issues industrial management over big television.2 occurring on the field. Those studies focused This study was conducted to understand on target groups and service delivery. Those what is truly the interest of the state, of which studies began with the target’s need for a policy in this case is the Ministry of Communication (not with the policy), then the investigation and Information Technology (Kementerian moves upward toward the capacity of Komunikasi dan Informatika –Kemenkominfo), the implementer—how the implementer in issuing such policy? If the Minister of influenced behaviors and allocated resources Communication and Information Technology to achieve policy objectives—, and ended with (Menkominfo) is the implementer of the law, policy evaluation (Elmore, 1979). Through such procedure, the issue of implementation 2 Summarized from the claim description delivered by is seen as an impact of the agent’s capability ATVJI and ATVLI in claim document number 38P/ HUM/2012 and number 40.P/HUM/2012. to understand the target group and develop

15 Policy & Governance Review, Volume 2, Issue 1, January 2018 appropriate service delivery strategy. The neutral and in the public interest, but is biased similarity of this research with previous studies toward capitalistic interests instead. Due to is that the role and position of agent in policy such perspective, knowledge about how the implementation are considered as being neutral interests of implementing agents, actors, and (Fischer, et al., 2015). relations among actors actually influence policy Sabatier and Mazmanian (1980) have implementation has not been much revealed. presented quite a comprehensive outlook The main thesis of this research is in viewing the factors that influence policy developed from the basic assumption of the implementation. They distinguish the factors political economy theory, namely how political influential to implementation into two: policy interconnection and political-economic interests (content) and non-policy (context). The policy among actors influence the proses of policy factor includes policy clarity, availability/ implementation in post-reform television absence of-of study results serving as policy broadcasting and the process subsequently basis, financial resource sufficiency, integration deviated from the objective of the law to realize of executing organization, recruitment of a democratic and decentralized broadcasting executing official, and formal access of executor politics in Indonesia. to other organizations. The non-policy factors Before discussing the political economy include social economic and technological theory, we should revisit the elaboration conditions, media attention to policy issues, concerning the principle-agent theory and public support, attitude and resource of the its explanation on how self-interested agent main target group, commitment and authority influence policy implementation. This support, and capacity of executing official. discussion is provided so that later in the Based on prior research, a study on actors analysis section a comparison can be made remains unnoticed. Although a few studies whether the issue of policy implementation is on the subject exist, scholars tend to place determined more by a self-interested agent(s) them in a bureaucratic-procedural, hierarchic or rather by the influence of principle(s) interest structure. This is, perhaps, brought about by instead. the scholars’ point of view that is inclined to The principle-agent theory introduced see implementation solely as a process of pure by Michael C. Jensen and William H. Meckling administration (Matland, 1995, p. 147-8). (1976), explains that agent has a vital role Positioning actors in such hierarchical in influencing policy. This theory places its structure would distance them from the reality concern on the relations that emerge when an that actors, including implementing agents, can individual or a group of individuals (principle) or may act on the basis of personal or group employs one or more people (agent) for the interest and that the implementation process purpose of delegating responsibility. Hereby, is satiated with political interests (Grindle & the principle entrusts the control of the system Thomas, 1989). This structure is also lacking in in the hands of the agent and the agent with its observation of the reality that certain types of their afforded authority executes their duties. relationships among actors may also contribute However, there is no guarantee that the agent to deviations in policy implementation. will obey the instruction of the principle as the Herman and Chomsky (2002), for instance, agent have the interest to maximize their own show how political-economic interests, as acquisition of profit. The basic premise of this witnessed in the compromise between capital theory is that all individuals are motivated owners or capitalists and regulators, led solely by their own self-interest. Weber (1978) policy implementation to no longer become correlated the self-interested agent with

16 Rahayu, Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting economic interest. Nevertheless, Goode (1997, furnishing rewards to secure their interests. p. 39-40) argues that self-interest also relates to This capitalist group is dependent on the the interest for power. This interest is linked government as it is the institution that to efforts in garnering the support of interest determines prevailing policies. This group groups, obtaining support for campaign also dominates relations due to the power of funding, or other supports/facilities. capital they own. The relationship between In connection with the implementation of politics (power) and economy (capital) here is broadcasting policy, the relationship between clearly a manifestation of a certain group’s (the the principle and the agent may be different capitalists) struggle. Various evidence showing to the domain of accountancy which mostly power or dominance of the capitalist group in manages the private domain as this theory broadcasting cases can be examined through was initially developed from. In the domain of a number of studies, such as in Napoli (2001b) broadcasting policy, there are quite a number and Stavitsky (1994). of parties with their own interests because the An actual illustration of interests and issue at hand deals with the public domain, political interconnection has been presented wherein the wider public has the right to by Ambardi (2008) through the concept of the the available resources and the state has cartelized political party. Such cartelization was the obligation of managing it fairly in order established in Indonesia following the general to realize social welfare. There is, thus, the election process wherein competition among possibility that there’s not just one principle political parties no longer became obvious. in this case, but many layers of them. They Ambardi mentions that party competition all expect the agent to take the best measures ends after the election and it is subsequently in implementing the policy according to their followed by the making of a cartel. The origin expectations. Here, the researcher realized of the cartelized party system is the collective the limitation of the principle-agent theory in dependency of various parties to engage in explaining the issue of policy implementation. rent-seeking to fulfill their financial needs. A number of literature on political media This, in turn, creates a situation in which the economy (such as Underhill, 2000; Herman & party’s economic and political fate is linked Chomsky, 2002; Golding & Murdock, 1997; as a collective. Their survival as individuals is Graham, 2007; Mosco, 2009) show states under determined by their capability to maintain the the control of capitalist groups. It is described cartel’s existence. The common interest of the in the literature that capitalist groups, namely political parties to secure their financial needs capital owners and/or media entrepreneurs, are compels them to place their representatives the most active and influential interest group in the executive ministerial cabinet and in the when compared to other interest groups in leadership structure at the commission level of influencing government elites. This very group the Parliament (Ambardi, 2008). also consistently acquires benefit from the Based on the explanation above, the government through the media policy that has government as a representative of political been issued. This relation shows the presence party cartel may view their collaboration with of political connection among those actors the capitalist group as beneficial. In addition, wherein political; economic interest operates the government may also see opportunities behind the issued policy. forrent-seeking in the world of broadcasting. Based on Mosco’s (2009) view, the capitalist group actively strives to influence government policy through lobbying and

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Methods Result This research employed the qualitative Actors with Interest approach by applying the methods of in-depth The researcher have identified at least interview and document analysis to gather six actors (group of actors) that had an interest data. In-depth interviews were conducted to in television broadcasting in Indonesia and obtain responses of actors connected to the they showed that they actively responded operation of digital television broadcasting. to policies, particularly those relating to the The interviews are expected to show political Minister of Communication and Information relations and political-economic interests Technology Regulation (Permenkominfo) on among the actors. The interviews were the operation of digital terrestrial television conducted for eight months (March until broadcasting (namely Permenkominfo 22 of October 2017) by involving 48 respondents 2011 and Permenkominfo 32 of 2013). The from Jakarta, Yogyakarta, Makassar and Bali. six actors were the Indonesian Broadcasting The informants consisted of the government Commission (KPI-Pusat (national) and KPI- (Kemenkominfo), KPI/KPID, private television Daerah (regional)), Jakarta private television broadcasting operators, regional government, broadcasting institutions with national National/Regional Legislative (DPR/DPRD), broadcast coverage (which will subsequently broadcasting activists and observers, and be called Jakarta-TV) and their corresponding former officials who had held positions associations (such as, the Indonesian Private in the government, legislative body, or Television Association/ATVSI), local private broadcasting regulatory body. Document television broadcasting institutions (which analysis was conducted for the purpose of will subsequently be called Local-TV) and their acquiring supporting data that relates to the corresponding associations (such as ATVLI political actions carried out by the actors, their and ATVJI), civil society organizations and interests, and how the relations among actors their affiliates (such as KIDP, SIKA, KNRP), the were established. People’s Representative Council (DPR), and the The data analysis of the study results government.3 was carried out in several stages. Firstly, the The Indonesian Broadcasting Commission researcher classified the results of document in the Broadcasting Law (Article 7 verse 2) is analysis based on certain themes relating to stated to be “an independent state institution the study matter. Secondly, the researcher that regulates broadcasting related matters.” transcribed all data obtained from the However, the authority of this institution had interviews into a verbatim format and applied long been curtailed due to a judicial review in coding. The coding result was subsequently 20034 that rendered the KPI to merely retain the classified into themes as well. The data obtained from document analysis was also 3 Aside from the six actors, there were also others such classified. Thirdly, once all the data have as the Public Broadcasting Institutions (TVRI and RRI), been collected according to the themes, the community broadcasting institutions, etc. that will voice their concerns in relation to the broadcasting policy. researcher applied matching patterns to find However, these institutions are not included in the similarities or differences in them. Fourthly, discussion of this article as the focus of study is aimed at the issue of commercial broadcasting operation. based on the above stages, the researcher made 4 The trimming began with a judicial review case a conclusion in order to answer the research challenging the Broadcasting Law that was filed by the question. Indonesian Television Journalists Association (IJTI), the Indonesian National Private Radio Broadcasting Association (PRSSNI), the Indonesian Association of Advertising Agencies (PPPI), the Indonesian Television

18 Rahayu, Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting authority of regulating contents. Although its Local-TV and their accommodating authority had been reduced, interview results institutions, such as ATVLI and ATVJI, had the with a number of KPI commissioners show that interest to develop their broadcast in the region the institution remains motivated and interested and expected the government to be committed in being involved in regulating Indonesian to developing a healthy broadcasting industry. broadcasting. KPI is also expectant of obtaining All this time, Local-TV is of the view that they funding allocation from the National Budget are a victim of government injustice, as in the (APBN) to support its work programs and to case of channel allocation in the region9. Local make it become more independent.5 television operators think there are many Jakarta-TV6 and their accommodating channels provided for Jakarta-TV rather than institution, such as the ATVSI, had an interest Local-TV. They stated their disappointment in defending their business position and as the practice of network broadcasting gaining profit from the broadcasting business system did not involve them.10 Additionally, that they had established and develop.7This they are dissatisfied with the government’s institution expected the government through stance of allowing deviant practices carried the regulations they make to provide legal out by members of Jakarta-TV networks in certainty and guarantee concerning the operating local television to continue because continuity of their business. Additionally, some television stations do not have and these institutions also intend to develop their do not broadcast local programs; if they do businesses, be it those related to the world of broadcast them, they will broadcast them broadcasting or those that aren’t (Rianto et al., during “graveyard slots” (with low amount 2014; Lim, 2011). All this time, big televisions of viewers) since prime time, and other slots that are gathered in ATVs have more than 100% have been taken up by programs relayed from control of the national private television shares. Jakarta.11 Given this position, they reap a substantial Activists and civil society organizations profit of trillions of rupiah per annum.8 that were also quite active in responding to broadcasting policies are KIDP12, SIKA13, and Broadcasting Association (ATVSI), Indonesian Dubbing Association (PERSUSI), and the Indonesian Television Community (KOMTEVE). These organizations among others stated their objection to KPI’s authority as trillion. This data was quoted from “Rajai Iklan Indonesia, it is regarded to have the potential of eliminating Tiga Stasiun TV Milik Hary Tanoe Raup Rp 23,2Triliun”. freedom of speech, freedom of expression, and Retrieved July 8, 2017 from http://bisniskeuangan. freedom of broadcasting institutions. Although the kompas.com/read/2015/12/10/160000126/Rajai.Iklan. Constitutional Court (MK) defended KPI’s position, Indonesia.Tiga.Stasiun.TV.Milik.Hary.Tanoe.Raup. it has fundamentally reduced KPI’s authority as a Rp.23.2.Triliun regulator. 9 Researcher’s interviews with Local TV operators in 2017. 5 KPI currently has funding allocation as well as human 10Interview with Muannas (Celebes TV), in Makassar, resource from Kemenkominfo. March 24, 2017. 6 The television stations meant here are RCTI, Global TV, 11 Researcher’s interviews with Local TV operators in 2017. MNC TV (included in MNC Group), SCTV, Indosiar 12KIDP is a civil society alliance advocating for more (EMTEC Group), ANTV, TVOne (Bakrie & Brothers), democratic Indonesian broadcasting regulators and Trans TV, Trans 7 (Trans Corpora), and Metro TV (Media regulation. The members of KIDP comprises of: AJI Group). Jakarta, AJI Indonesia, Alwari (Indonesian Alliance of 7 Interview with Gilang Iskandar (Corporate Secretary of Radio Journalists), ICJR (Institute for Criminal Justice SCTV and ATVSI manager), in Jakarta, May 16, 2017. Reform), Indonesian Community Radio Network (JRKI), 8 As an illustration, the advertisement income in 2015 LBH Pers, Development and Press Research Institute for RCTI reached Rp 9.9 trillion, SCTV Rp 8.8 trillion, (LSPP), Media Link, Media Regulators and Regulation Indosiar Rp 7 trillion, ANTV Rp 6.6 trillion, Global TV Monitor (PR2Media), Remotivi, 28 Foundation, Ladang Rp 5.4 trillion, Trans7 Rp 5.1 trillion, Trans TV Rp 4.525 Media Foundation, Tifa Foundation. trillion, TV One Rp 4.5 trillion, and Metro TV Rp 2.9 13Members from ICJR, LBH Pers, Elsam, AJI.

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KNRP.14 This organization, or association to broadcasting regulation upon the judicial review be exact, is a civil society alliance with the ruling that provided the authority to decree interest of advocating for a democratic digital governmental regulations, which functions broadcasting system. They actively conduct to provide a more operational elaboration on studies, state their position, draft policy briefs, the implementation of the Broadcasting Law. compose press releases, hold press conferences, KPI, which in the initial composition of the law write opinions on the media, hold dialogs was expected to function as an independent with DPR, and compose a revision draft of the regulatory body, due to political movements Broadcasting Law. attempting to restrict its role, had been merely Although DPR wields the authority of afforded the authority to regulating contents. drafting legislation and monitoring government In a number of issues dealing with permits, KPI administration, this state institution tends to be assumes no more than a supplementary role to passive in responding to the implementation the government. The government’s interest in of the Broadcasting Law. A number of activists broadcasting seems to be connected to the efforts representing civil society organizations of reinstating the supremacy of broadcasting revealed that position statements, policy briefs, regulator in the hands of the government.15 and discussion proceedings from hearings at the council were mostly not followed up by Relations among Actors DPR. Additionally, the stance and interest of Actors with quite varied interests show DPR members may drastically differ from one relations that were far from being harmonious period to the next. Ade Armando’s experience and were marked by a number of conflicts that in applying for the KPI member selection shows involved the court. In the case of Permenkominfo that there is a difference between the 2004-2007 (Communication and Information Technology period and the 2007-2010 period (Armando Ministerial Regulation) on the operation et al., 2011). He considered the strong stance of digital television broadcasting, I have of DPR to have vanished, this is observed categorized the groups into proponents (pros) from the acceptance of several names of KPI and opponents (cons). The proponents of the candidates recommended by ATVSI, although Permenkominfo, among others, were KPI, the candidate application process had already Jakarta-TV (including ATVSI), and DPR. The been closed. Armando also received criticism opponents, among others, were Local-TV from Council members for criticizing a number (including associations of ATVLI and ATVJI) of regulations made by the government, while and civil society organizations. in fact the exact same regulation was once The proponents were basically of the requested by the previous period DPR to be view that the ministerial regulation (permen) postponed. The DPR’s accommodative stance provides a solution to the limitation of channels, toward the government seems to be reinforced it provides greater opportunity for the public in the 2007-2010 period. to establish television stations, it advances the The government may be considered to broadcasting industry, and provides better play a central role in the implementation of program services to the public. broadcasting policy. This institution has taken over some of the strategic roles of television 15It is evident in Permenkominfo No. 22 Year 2011 on the operation of digital terrestrial free to air television. 14KNRP has more than 160 members consisting of In articles 10, 13, 19, 23 and 25 that regulate digital scholars and practitioners along with 20 civil society broadcasting, including permit, is carried out by the organizations that are concerned with broadcasting minister. Not a single provision stated the role of KPI that is democratic, fair, and inclined to public interest. in it.

20 Rahayu, Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting

KPI supports the Permenkominfo since always been inclined to the interests of those they consider it important under the current television stations.17 conditions to provide support so that KPI In this case, DPR regarded the has a role in the digitalization team16. This digitalization of television broadcasting as an stance seems to have made KPI keep silent important program to implement in line with about the permen. By holding this position, it current technological development. However, means that KPI is no longer much concerned DPR, or Commission I to be precise, agreed with the public’s rejection of the regulation. that the digitalization process must have a legal This position confirms my view that KPI is no umbrella in the form of legislation. Commission longer committed as a “manifestation of public I DPR had, thus, made an initiative to revise the participation that functions to accommodate Broadcasting Law to include the broadcasting aspirations and represent public interest digitalization process in it. According to concerning broadcasting issues,” as stipulated the Chairperson of Commission I DPR RI, in Article 8 (verse 1) of the Broadcasting Law. Mahfudz, this digital permen is risky because if While this institution was quite critical to a something were to happen, the minister would number of governmental regulations deemed be held accountable, because the legal umbrella biased to the industry in its initial establishment, is a ministerial regulation.18 in the subsequent periods this institution Meanwhile, the opponents are basically tended to be passive and compromised with of the view that the broadcasting operation policies issued by the government. policy does not have a legal basis, the substance Jakarta-TV and ATVSI supported the of the regulation contradicts the Broadcasting ministerial regulation based on a number of Law, the policy neglects the capacity of Local- reasons: changes in broadcasting technology TV, and there is bias to the more stable Jakarta- are inevitable, the opportunity for improving TV. broadcasting service quality, and also Local-TV and their associations (ATVLI broadcasting business progress. Their support and ATVJI) rejected the Permenkominfo to the Permenkominfo had already been because they sense injustice and discrimination predicted because since digital broadcast had in the policy. Through ATVLI and ATVJI been initiated by the government in 2007, this they emphasized that they are not against institution had participated as a part of the digital broadcasting but rather the regulation Indonesian Digital Television Consortium of it. ATVLI objected to a number of things, (KTDI). This institution had also participated in the digital broadcast trial that was carried 17Governmental Regulation (PP) No. 50 year 2005 on out in 2008. There was never any significant the Broadcasting Operation of Private Broadcasting conflict between Jakarta-TV (and ATVSI) Institutions, the government had also provided special and the government concerning the issued treatment to these institutions at least in two things, namely: regulation on share ownership (stipulated in broadcasting policies. This is because the article 32 verse (3) of PP. No. 50 year 2002) and regulation government policies on broadcasting had on coverage of broadcast area in the operation of network broadcasting (as stipulated on article 36, point f PP No. 50 year 2002). 16Presented during a Focused Discussion on the Problems 18Presented during a Focused Discussion on the Problems of Digital Television Broadcast in Indonesia, held of Digital Television Broadcast in Indonesia, held by by the Independent Journalists Alliance (AJI) and the Independent Journalists Alliance (AJI) and Tifa Tifa Foundation in Jakarta, Wednesday, February Foundation in Jakarta, Wednesday, February 26, 2014. 26, 2014. Source: “Soal Digitalisasi Televisi, KPI Source: “Soal Digitalisasi Televisi, KPI Seharusnya Seharusnya Dilibatkan”, Retrieved from http://www. Dilibatkan”, Retrieved July 12, 2017 http://www. antaranews.com/berita/421097/soal-digitalisasi-televisi- antaranews.com/berita/421097/soal-digitalisasi-televisi- kpi-seharusnya-dilibatkan, July 12, 2017. kpi-seharusnya-dilibatkan

21 Policy & Governance Review, Volume 2, Issue 1, January 2018 among them were: KPI was not involved in in the operation of digital broadcasting? Based digital broadcasting operation, the presence of on Law No. 12 of 2011 on Establishment of multiplexing agents and the selection criteria Laws and Regulations (article 8 verse 2), it is which favors strong investors with broadcasting stipulated that laws and regulations (including license, the obligation of collaborating with ministerial regulations) are acknowledged and multiplexing agents in order to broadcast, have binding legal authority by fulfilling two the position of broadcasting institutions requirements: first, mandated by a higher tier of restricted to mere content providers, and so laws and regulations, and second, made based on. Since the government and KPI did not on authority. listen to their complaints, some of the parties, Based on the article by article search of the among them the Indonesian Local Television Broadcasting Law, 10 provisions were found to Association (ATVLI) and the Indonesian give a mandate to the government in making Network Television Association (ATVJI) regulations.21 Among the ten provisions, not a has brought the digitalization case to court. single one mentioned anything about digital They demand the annulment of a number of broadcasting. The same results were acquired ministerial decrees and regulations relating to when a number of governmental regulations digitalization. relating to the broadcasting operation were Civil society organizations with their searched22 in which there was not a single affiliates rejected the Permenkominfo with article that explicitly directs the minister to a number of reasons, namely: it has no legal make a ministerial regulation on the operation umbrella, it substantively contradicts the of digital broadcasting. This means that the Broadcasting Law, the policy is considered first requirement for the Permenkominfo to be to perpetuate ownership practices in the acknowledged has not been met. broadcasting industry,19and it also threatens As mentioned above, the presence of the existence of Local-TV. KIDP, for instance, KPI as a regulator is basically unwanted by the stated that Menkominfo had discriminated principles because of its possibility of disrupting certain parties in the process of broadcasting their interests. However, it is impossible to digitalization.20 truly eliminate it since the principles would be confronted with the public and civil society Political Actions of Agents organizations that would not let KPI be In an interview with Henry Subiyakto, a researcher and expert staffer of the Ministry of 21Article 14 verse (10) on Public Broadcasting Institutions; Communication and Information Technology, article 18 verse (3) on organization of quantity and coverage of local, regional, and national broadcasting he stated that the drafting of the permenkominfo areas, for broadcasting services; article 18 verse (4) on employed three legal bases, namely the the restriction of ownership and control and restriction of cross ownership; article 29 verse (2) on licensing Broadcasting Law (in the elucidation section), procedures and requirements; and so forth. . PP No. 11 of 2005, and PP No. 50 of 2005. Did 22 PP No. 11 of 2005 on Public Broadcasting Institutions, PP the three legal bases truly serve as a reference No. 12 of 2005 on RRI Public Broadcasting Institution, PP No. 13 of 2005 on TVRI Public Broadcasting Institution, PP No. 49 of 2005 on Foreign Broadcasting Institutions, 19 This explanation is quoted from a press release PP No. 50 of 2005 on Broadcasting Operation of published by KIDP on July 19, 2012 entitled “KIDP Private Broadcasting Institutions, PP No. 51 of 2005 on Himbau Menkominfo Menunda Seleksi Multipleksing.” Broadcasting Operation of Community Broadcasting 20Ahmad Budiman (2012). Menyoal kebijakan Digitalisasi Insitution, PP No. 52 of 2005 on Broadcasting Operation Penyiaran. Info singkat Vol. V, No. 20/II/P3DI/ of Subscription Broadcasting Institutions, PP No. 7 of Oktober/2012. Retrieved August 23, 2017 from http:// 2009 on Types and Tariffs for Non-Tax State Revenue berkas.dpr.go.id/puslit/files/info_singkat/Info%20 Items that apply at the Department of Communication Singkat-V-20-I-P3DI-Oktober-2013-20.pdf. and Information Technology.

22 Rahayu, Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting removed. The Minister had very proficiently In the operation of digital broadcasting, articulated the principles’ desire by reinforcing the Minister even initiated the multiplexing his authority. The actions taken by the Minister operating organization. This institution is apparent through his Permenkominfo No. 22 was designed to later manage the digital of 2011 and Permenkominfo No. 32 of 2013. In broadcasting infrastructure so that program both regulations, the Minister serves as a single operating institutions can broadcast the ruler in providing operational licenses for contents they produce. In determining the broadcast program operators and multiplexing institution, the Minister issued Permenkominfo operators. No. 32 of 2013 and Permenkominfo No. 6 To increase spectrum usage efficiency, of 2013.26 In the ministerial regulation it is Kemenkominfo issued Permenkominfo No. stated that the institutions allowed to operate 5 of 2012 on Digital Terrestrial Free-to-Air multiplexing, among others are: LPS (other Television Broadcasting Standards which than LPP-TVRI) that already has operating determined the use of DVB-T2 technology broadcasting license, has sufficient existing as the broadcasting operation technology infrastructure and human resource, and has the in Indonesia.23 With this technology, one capacity to pay bond money both bid bondand channel of multiplexing (mux) will be able to performance bond of which amount may reach channel as many as 12 channels for television up to hundreds of million rupiah. broadcasting. Kemenkominfo also established With such huge sum of bond money, the amount of multiplexing (mux) channels that very few local television stations will be able to will be open for every service area to be 6. Five afford it. In some of the local television stations mux to be allocated for private broadcasting that the researcher visited, such as Celebes TV operation24 and one mux for the community (Makassar), Fajar TV (Makassar), Jogja TV, and public broadcasting operation.25 Based RBTV, and AdiTV (these three are based in on the regulation, it is predicted that there Yogyakarta), the operators were not approving will be approximately 4,572 channels that of the bond money sum required. The tender may potentially be used for private television system established by the government was also broadcasting operation. considered to have ignored the capacity of local television stations. It is evident here that the government 23This Permen replaced Permen No. 7 of 2007 on Digital Terrestrial Broadcasting Standards for Fixed had purposely created a barrier to entry in the Reception Television in Indonesia which had established broadcasting industry. Based on the selection DVB-T (Digital Video Broadcasting-Terrestrial) as the criteria, the Ministry of Communication and broadcasting operational technology in Indonesia. 24It is stated in Permenkominfo No. 17 of 2012 on Information Technology had succeeded in the Implementation of establishing multiplexing selecting and determining thirty-three (33) broadcasting operation and also Permenkominfo No. 6 multiplexing operating institutions. It was of 2013 on the Amendment to the ministerial regulation No. 17 of 2012 on the Implementation of establishing proven that most of these institutions were multiplexing broadcasting operation. big television broadcasting institutions and/or 25It is stated in Permenkominfo No. 22 of 2011 (article their affiliates that had always been dominating 11) “the Minister establishes TVRI Public Broadcasting Institution as an LPPPM that applies nationally without television broadcasting in Indonesia, namely: having to undergo a selection process to use 1 (one) RCTI, SCTV, Indosiar, ANTV, TV One, Trans channel of radio frequency in every service area.” And Permenkominfo No. 32 of 2013 (article 14) “the Minister establishes LPP TVRI to operate Multiplexing 26Ministerial regulation on the Amendment to the Broadcasting through a Terrestrial System that applies Ministerial Regulation No. 17 year 2012 on nationally by using one channel of radio frequency in the Implementation of establishing multiplexing every service area.” broadcasting operation.

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TV, TV7 and Metro TV. and the like.28 Aside from fulfilling the interest of For the government’s own interest, the Jakarta-TV, the Minister also very adeptly Minister attempted to boost Non-Tax State responded to the interest of political parties Revenue (PNBP). The Minister set targets in terms of their intention to own television of PNBP receipt and proudly announced stations. How several television stations were them to the public when it had exceeded the exploited by the owners for political campaign target. In terms of broadcasting, PNBP came purposes in the 2014 General Election seem to from radio frequency usage fee. However, have instigated other political parties that did I examined that the target of PNBP was not not own one to do so. In the Broadcasting Law, only directed at the broadcasting industry political parties are not allowed to establish but from the telecommunication industry or own television stations because only four as well. Syaifudin (Sub-Section Head of broadcasting institutions are regarded as valid, Broadcasting at the Ministry of Communication namely: subscription, community, private, and and Information Technology)29 in an interview public broadcasting institutions. Community with the researcher stated that a much more broadcasting institution here is emphasized significant sum is acquired from the frequency to be independent and founded by the non- rental income for telecommunication. In brief partisan community, and the presence of the before the press, Tifatul Sembiring, who institution is not for propaganda interest of was the Minister of Communication and a certain group. Additionally, the limitation Information Technology at the time, even said of the analog channel makes it impossible for that PNBP from the telecommunication sector them to establish a television station. However, is the second highest following the revenue with the operation of digital broadcasting, in acquired by the Ministry of Energy and Mineral which there are much more digital channels Resources. Most of the PNBP receipts were available, it enables them to establish one. This from the Directorate General of Information limitation had “momentarily” driven political and Postal Equipment and Resources, that is parties, like PKS, to broadcast via YouTube.27.The from frequency rentals for telecommunication magnitude of political party interest became industry purposes.30 obvious with the emergence of the Broadcasting Law draft composed by DPR (version February Discussion 6, 2017) which mentions a clause on special This study has identified several actors broadcasting by allowing political parties to with interest in the implementation of television operate broadcasting stations. broadcasting policy in Indonesia. The presence Political party interest also relates to of these actors could not be so easily placed political communication. Politicians often as principles or agent(s) due to their layered contact television station operators to obtain talking space through their media. Some 28 would request the television stations to cover Interview with Satria Narada/Bali TV (in Denpasar, July 12, 2017) and Kadek/SCTV Bali (in Denpasar, July their party events, invite the party figures 17, 2017) as speakers, and even contact the media to 29 Interview conducted in Jakarta, May 4, 2017. broadcast private events, such as birthdays 30 Source from Press Release No. 2/PIH/Kominfo/2013. “Tingkat capaian dan prestasi Kementerian Kominfo tahun 2012” https://ppidkemkominfo.files.wordpress. com/2013/01/siaran-pers-awal-tahun-20131.pdf and news “PNBP Kominfo capai Rp 11,5 Triliun”. Retrieved 27Interview with the Head of PR DPP-PKS (at the time), August 22, 2017 from https://kominfo.go.id/content/ Dedi Supriadi, in Jakarta, July 25, 2017. detail/1512/pnbp-kominfo-capai-rp115-triliun/0/berita

24 Rahayu, Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting roles and positions. Beginning with the their support while reminding the need to principle-agent theory, the principle is the wait for a legal umbrella; the rest is silent. This party employing the agent for the purpose of silence is a political stance. This stance may be delegating responsibility. This means there is a understood as a position of support; comments formal structural line of command that connects may perhaps be unnecessary since the agent the principle to the agent. Hence, neither of the has been entrusted to carry out its duties with actors explained above can be considered as a the given authority. This position may also be principle(s) nor agent(s). The relation showing understood as an effort to ‘develop an image’ principle-agent connection is observed between due to the arguably significant public resistance DPR-minister/government. However, if we to the policy. A wrong stance may have a were to dig deeper by considering ministerial negative impact on one’s image and would appointment by the president, and DPR subsequently affect their votes. DPR invited the (nomination of legislative members) from minister several times to discuss the operation political parties, then we can see that there is a of digital television broadcast, but the sessions tiered principle-agent relation, that is political were more about listening to elaborations party-DPR-president (and vice president)- from the minister rather than reminding and minister. Since KPI is basically mandated by instructing ministerial policy to be in line with the Broadcasting Law to manage to broadcast the mandate of the Broadcasting Law.31 along with the government, then KPI can also How is it possible that there is a uniformed be considered as an agent. An illustration of the stance in responding to the digital policy given multi principles and agent may be as follows: the tiered position and relation? This study shows that there are political interconnection Figure 1. and common interest among the principles as Principle-agent Connection well as the agent. As illustrated by Ambardi (2008) in “cartelized political party,” after the general election, competition among political parties ends. The ensuing process is the formation of cartels wherein political parties that once competed engage in collaboration and mutually work together to maintain their survival. The Source: research result common interest of political parties compels them to place their representatives in the cabinet This tiered position and relation do and in leadership boards at the commission level not seem to correspond with the control or in the Parliament (Ambardi, 2008). That is the monitoring function that should be carried reason why a different position in an institution out. As mentioned earlier, Permenkominfo on does not necessarily mean a different person the operation of digital television broadcasting since the individuals positioned there are their ended with an annulment by the MA. The people as well. Hence, it is very commonplace digitalization process that had been undergoing that their voices be in tune when facing particular due process is currently at a standstill. Amidst the controversy, there are nearly no voices heard be it from the president, DPR, and 31Results of examining transcripts of the Public Hearing political parties, as well as KPI, commenting (RDPU) with Commission I DPR RI, April 6, 2015. on the minister’s initiative in creating and “Digitalisasi Penyiaran Televisi - Rapat Komisi 1 dengan Asosiasi Televisi Siaran Digital Indonesia”. Retrieved maintaining the regulation. Only DPR stated July 19, 2017 from http://www.tvdigitaljogja.tv/2015/06/ digitalisasi-penyiaran-televisi-rapat.html

25 Policy & Governance Review, Volume 2, Issue 1, January 2018 issues. In the case of the ministerial regulation factions displays interest in making deals with on digitalization (No. 22 year 2011 and 32 year the commissioner candidates who intend to 2013) for example, we can see the political garner support. This does not only happen at interconnection between the President (Susilo the national level but at the regional as well Bambang Yudhoyono, from the Democratic Party, in the KPID selection by the DPRD.33 The PKS one of its main supporters), the Minister accommodating candidate will gain support (Tifatul Sembiring, from the Democratic Party), from the faction/party throughout the selection Chair of Commission I (Mahfid Siddiq from the process. Such is also the case with the industry, Democratic Party), and the Democratic Party in which they conduct a “silent operation” (as the winner of the 2009 legislative election by by lobbying council members and factions to acquiring 150 seats (26,4%)). recommend the commissioner candidates they How is this interconnection linked to consider supportive of their interests.34 the capitalist group, such as Jakarta-TV? It is In order to operate digital television known that media conglomerates have close broadcasting, the Minister had taken a risk relations with politicians and some politicians by acting outside the legal jurisdiction. Such are media owners as well. These media owners audacity surely had strong reasoning behind openly show their political affiliations (Lim, it. One of the possibilities is that the Minister 2011) and some are even positioned as party was an ‘ally’ and executor of a mandate from leader. As elaborated by Merlyna Lim (2011), political elites who held control of the state. This Surya Paloh, who is the chair at Media Group fact concurrently indicates that the agent of the is also a leader in the National Democratic act undertake more significantly influenced by (Nasdem) Party. Paloh was also the chair of the common interest of the principles rather the Golkar Party’s board of advisors. Aburizal than the self-interest of the agent. The agent in Bakrie who is head of the Bakrie & Brothers this case truly functioned as a representative or group was the chairman of the Golkar Party. delegation of the principles in accomplishing Chairul Tanjung who owns Trans TV and their interest. What the agent had done was Trans 7 has close ties to former president Susilo none other than what the principles desired. Bambang Yudhoyono. Hary Tanoesudibjo who is a leader in MNC Group was a prominent Conclusion figure in Hanura and is currently the chairman In exploring the issue of policy of the Perindo Party with close ties to several implementation, it is imperative to understand figures in a number of influential parties. Under political interconnection and common such conditions, the interest of political parties interest among actors. This study shows that and the interest of the media is intertwined and self-interested agent is not the main actor is difficult to untangle. who determines the orientation of policy Among the principles and agent above, implementation. Multiple-principles, namely the actor bearing the potential to become political parties, DPR, President, who are the an opposition is KPI. Yet, KPI is no stranger to the DPR and to the capitalist group. The interview with a KPI commissioner candidate Jakarta, May 16, 2017) and Paulus Widiyanto/former DPR Commission I member (in Jakarta, May 18, 2017). who is a former DPR member shows that 33 Interview with Muliartha/former KPID-Bali (in the KPI commissioner selection process is Denpasar, July 13, 2017). far from being objective.32 DPR through the 34 Summary of interviews with Kristiawan/applicant to KPI-Central (in Jakarta, May 16, 2017) and Paulus Widiyanto/ former DPR Commission I member (in 32Interview with Kristiawan/applicant to KPI-Central (in Jakarta, May 18, 2017).

26 Rahayu, Political Interconnection in the Operation of Digital Terrestrial Free-to-Air Television Broadcasting political elites and controller of the state have (Unpublished doctoral dissertation). The more influence on policy implementation. University of Pennsylvania. These multiple-principles are established Ambardi, K. (2008). The making of the Indonesian through party cartelization. They strive to multiparty system: A cartelized party system accumulate power, and they mutually struggle and its origin (Unpublished doctoral to accomplish their interest. For that, they dissertation). The Ohio State University. employ their ‘people’ to occupy strategic Armando, A., & Henny, P. (2011). Televisi government positions. The agents are nothing Jakarta di atas Indonesia: kisah kejanggalan more than an extension of their authority, and sistem televisi berjaringan di Indonesia. they play a vital role in actualizing the mandate Yogyakarta: Bentang. of the principles. Budiman, A. (1996). Teori negara: negara, In relation to television broadcasting kekuasaan, dan ideologi. Jakarta: Gramedia operation, the interest of the principle Pustaka Utama. intertwined with the television capitalist Crouch, H. A. (2010). Political reform in Indonesia group. Even some of the principles were also after Soeharto. Singapore: ISEAS - Institute media owners and/or had good relations with of Southeast Asian Studies. media owners. Within the constellation of Fischer, F., Miller, G.J., & Sidney, M.S. (2015). such relationship, the agent submits to the Handbook analisis kebijakan publik: teori, principles. The Minister of Communication politik dan metode (I. Baihaqie, Trans.). and Information Technology’s policy which Bandung: Nusamedia. was manifested in the ministerial regulation Golding, P., & Murdock, G. (1997). Culture, on the operation of digital terrestrial free-to- comunications and political economy. In air television broadcasting was an indication Golding & Murdock (Eds.), The political of such submission. In order to issue the economy of the media. Cheltenham: Edward regulation, the Minister dared to take a risk Elgar Publishing. without considering Local-TV and public Goode, W. J. (1997). Rational choice theory. The aspirations as well as existing laws and American Sociologist, 28(2), 22-41. regulations. The regulation was clearly biased Graham, P. (2007). Political economy of to the interest of political elites and the capitalist communication: a critique. Critical group. The result of the study provides a Perspectives on International Business, substantial contribution to the development 3(3), 226-245. of the principle-agent theory in examining Grindle, M. S., & Thomas, J. W. (1989). Policy policy implementation issues. This study also makers, policy choices, and policy shows that capitalistic (economic) interest had outcomes: the political economy of not only affected the government’s political reform in developing countries. Policy actions. It was rather much more extensive Sciences, 22(3-4), 213-248. than that, the economic interest among the Herman, E. S., & Chomsky, N. (2002). principle(s) and also the agent(s) had led to the Manufacturing consent: The political economy emergence of a number of political actions in of the mass media. NY: Pantheon Books. the implementation of post-reform Indonesian Heychael, M. & Wibowo, K.A. (2014). Melipat broadcasting policy. Indonesia dalam berita televisi: Kritik atas sentralisasi penyiaran. (Rep.). Jakarta: References Remotivi, Fikom Unpad, Yayasan Tifa. Ali, C. (2013). Where is here? An analysis of localism Judhariksawan. (2013). Kapita selekta hukum in media policy in three western democracies. penyiaran. Makassar: Qalam Insani.

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