APJII Internet Providers Report of Plunging Income amid COVID-19
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25 June 2020 07:58 WIB
TEMPO.CO, Jakarta - The latest survey by the Indonesian Internet Providers Association (APJII) says there is 34.5 percent of internet service providers facing cancelations and contract terminations due to the COVID-19 pandemic.
This has caused 44.8 percent association members to experience a 30 percent drop in revenue with 5.9 percent members filing for bankruptcy due to the imbalance in income and operational costs.
“Despite this, there is still 31 percent APJII members that claim to be running normal operations. This is a dynamic situation for members especially in current circumstances,” said APJII chairman Jamalul Izza in a written statement on Wednesday, June 24.
Moreover, Jamalul revealed that the semi-quarantine PSBB (large-scale social restriction) imposed by the Indonesian government in early March had forced people to remain indoors and at home. This situation caused 70 percent of APJII members to suffer as 70 percent of them rely on subscription from corporations in b2b (business-to-business) deals.
There is 22.3 percent of internet service providers that adopt such a business model which closed more than 50 percent of its operational locations.
In order to survive the COVID-19 ordeal, 88.5 percent of APJII internet service providers have committed to avoid laying off its workers.
Read also: AJI: Govt Uses Internet Block to Control Situation
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