PT Surya Citra Media Tbk (SCMA) – which is the umbrella company of free-to-air television networks of SCTV and Indosiar – will allocate IDR 250 billion for capital expenditure (Capex) for digital infrastructure development from analog TV to digital TV. The company will also establish a new studio and purchase broadcasting equipment.
SCTV was established in 1990. In 1993, it received its status license as national television. In 1999, its majority shares were acquired by Surya Citra Media, and by 2013, it officially merged with Indosiar. Sutanto Hartono currently serves as SCTV CEO since 2013.
SCMA continues digitalization
SCMA allocates the Capex for 2023 to ensure a smooth mandatory transition from analog TV to digital TV. The fund will be utilized to support the analog-to-digital transition, build and upgrade transmission towers, and acquire studio and broadcasting equipment.
Rusmiyati Djajaseputra, the Director of holding company Surya Citra Media, said the capex would be used for the analog switch-off (ASO) agenda. It will also be used to establish a new studio and its infrastructures, as well as its broadcasting equipment.
However, the 2023 Capex is considered smaller than this year’s Capex budget of IDR 350 billion. In the third quarter of 2022, the company has realized about IDR 300 billion, or 85.71% from the allocated fund, Djajaseputra said as quoted by Bisnis Indonesia on November 8, 2022.
Risk of digital transition
Hartono said during a meeting with the House of Representatives (DPR)’s Commission I overseeing defense, foreign affairs and communication and informatics on June 23, 2022, that the public have not been ready to switch from analog TV to digital TV.
According to tekno.kompas.com, 57% Jakartans are not ready to migrate toward digital TV.
Meanwhile, Syafril Nasution, Head of the Indonesian Private Television Association (ATVSI) said: “We see the Jabodetabek [Greater Jakarta] community’s unpreparedness”.
According to a survey by AC Nielsen on October 1, 2022, only 43% of Jakartans were ready to migrate to digital TV.
