Internet Strike Would Cost Rp270bn a Day

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  • TEMPO.CO, Jakarta - Internet service providers' plan to cease operations in protest over the guilty verdict against IM2 Director Indar Atmanto for using Indosat's 3G frequencies is estimated to cause tremendous harm .

    Samuel Pangerapan, chairman of the Indonesian Internet Service Providers Association (APJII), said the money circulation in the telecommunications and Internet business reaches Rp100 trillion per year.

    "For internet service business alone, not operating for a single day could cost Rp270 billion," he said yesterday.

    Another industry that will suffer from the strike is the capital market. Based on data from the Indonesia Stock Exchange (IDX), Samuel said that without internet connection, the market could lose Rp90 billion per hour.

    Internet providers have threatened to cut off their services after the Supreme Court (MA) ruled out Indar's appeal. The MA pushed through with the Jakarta High Court's verdict to sentence the IM2 director eight years in prison for using Indosat's 2.1 GHz frequency network (3G). Last Tuesday, Indar was taken to Sukamiskin Prison in Bandung.

    The case began in 2007 when Indosat obtained the rights for 3G frequencies. Indosat then marketed the frequency through IM2. The district attorney's office questioned the cooperation between the two companies, since IM2 has never participated in the 3G bid.

    In July 2013, Indar was sentenced to four years in prison by the Jakarta Corruption Court. He was convicted of corruption that cost the state Rp1.36 trillion.

    Samuel said the case has created legal uncertainties for members of the APJII, since the same business scheme is also carried by most members.

    "We want to seek legal protection to the Supreme Court," he said. The request will be submitted through the Ministry of Communications and Information Technology. APJII also plans to meet with Jokowi-Kalla's Transition Team to speak of the matter.