Internet Boycott Can Cause Major Losses, Association Says

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  • Ancaman Penghentian Layanan Internet

    Ancaman Penghentian Layanan Internet

    TEMPO.CO, Jakarta - Samuel Pangerapan, Chairman of Indonesian Internet Service Provider Association (APJII), said that if internet service providers (ISP) decided to boycott internet connections, there will be massive financial losses. In one year, said Samuel, the turnover from the telecommunication businesses, including ISPs, can reach up to US$8.3 billion. "If the ISP's do not operate for one day, the losses could reach up to US$22.4 million," he said on Thursday, September 25, 2014.

    The losses can affect other sectors that depend relies heavily on internet connection. One of which is the stock market industry. Based on data by the Indonesia Stock Exchange, the absence of internet connection can generate losses up to US$7.5 million per hour. Losses from other related industries and the widespread chaos among the people may cost even more seeing that the internet has become a lifestyle and that many people's lives depend on it.

    There are currently 16 ISP's and five telecommunications operator that are on the verge of facing the same fate as Indosat Mega Media (IM2). The boycott plan follows shortly after the indictment of Indar Atmanto, former CEO of IM2. The case started when the Attorney General questions the cooperation between Indosat and its subsidiary IM2. IM2 was found guilty of utilizing the 2.1 GHz/3G frequency owned by Indosat from 2006 to 2012.

    Indar was sentenced to four years of imprisonment by the Corruption Court and was later increased by the Jakarta High Court to eight years. Indar was guilty of corruption, costing the state US$112.8 million. Samuel said this case has caused restlessness and legal uncertainty for APJII members. "Similar business schemes are run by majority of the members," he said.