IT Ministry in process of revoking First Media, Bolt licenses after their failure to pay debt

The Communications and Information Ministry (Kominfo) says it will go ahead and pull the frequency licenses of local ISPs First Media and Bolt after both failed to pay their respective debts to the government before the Nov. 17 deadline.

Kominfo confirmed that both PT First Media and PT Internux, the companies behind First Media and Bolt respectively, missed the deadline on Saturday to pay a combined IDR708 billion (US$48 million) of arrears plus fines on their 2016 and 2017 2.3 GHZ radio frequency usage fees.

“There was no payment as of this morning, so the relevant processes [to pull their licenses] will be carried out,” Kominfo official Dwi Handoko said yesterday, as quoted by CNBC Indonesia.

“As today (Sunday) is a holiday, Kominfo is in the process of preparing a warrant to revoke the licenses of the operators. Tomorrow on Monday, November 19, we will issue the warrant.”

Another company, PT Jasinta Telekomindo, which provides internet service to around 100 corporations, is also going to be included in the warrant for their failure to pay IDR2.2 billion in frequency usage arrears.

What the consequences of the ministry’s revocation of their ISPs’ licenses on their customers is not yet entirely clear. While it’s understood that Bolt customers won’t be able to access the internet as a result, First Media has already said that it would not affect their internet and home cable services as those are operated under a separate, unaffected sub-division in the company.

Neither First Media nor PT Internux have yet to issue any statements regarding what compensation, if any, their customers are entitled to receive should their internet service be terminated after the government revokes their respective radio frequency licenses.

Both First Media and PT Internux are subsidiaries of Lippo Group, the conglomerate that has also been much in the news recently after several of its executives were arrested by the Corruption Eradication Commission (KPK) in connection to alleged bribes paid to facilitate the construction of their Meikarta development in Bekasi.

As for Jasnita, it appears they prepared for the license revocation by already switching their customers over to an alternative, unlicensed radio frequency band.