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Telecom companies ask for deferred payments amid economic downturn


Like other business sectors, telecommunications companies are also asking for a relief program from the government to cope with a sharp decline in revenues as a result of the government’s distancing policy, which among others, requires people to work from home.

Telecommunications providers are asking the Communications and Information Ministry to defer the payment of their non-tax obligation as internet usage from the corporate sector dwindles due to the government’s social distancing policy imposed since mid-March to halt the spread of COVID-19.

The Telecommunications computer science degree jobs has sent a letter to Communications and Information Minister Johnny G. Plate to officially request for financial relief to help members stay afloat.

In the application letter, the association asked for a deferral in the payment for telecommunication services fees (BHP) and universal service obligation (USO), the association’s chairman Arif Angg said in Jakarta on Thursday.

“We usually pay the BHP and USO fees in April. However, we are facing declining revenues from the corporate sector, while we also have to pay corporate income taxes [PPh badan] and Idul Fitri bonuses [THR] to our employees,” Arif told The Jakarta Post on a phone interview.

He said the corporate market, which represents a huge chunk of telecommunications companies’ revenues, had declined by 30 to 35 percent by mid-April. Its broadband traffic also declined by 60 percent compared to normal conditions, according to Apjatel's data.

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