IT Ministry says it’ll pull licenses of First Media and Bolt ISPs this Saturday if IDR 708 billion debt not paid

Millions of Indonesians utilize home internet service provider First Media and mobile internet provider Bolt to get online, but the government says both companies owe them massive amounts in overdue fees and will have their licenses revoked (and thus, have their customers’ services cut off) if they aren’t paid in full by this Saturday.

Minister of Communication and Information Rudiantara yesterday confirmed reports  that PT First Media and PT Internux, the company behind Bolt, have not paid arrears plus fines on their 2016 and 2017 radio frequency usage fees amounting to IDR 708 billion (US$ 48 million) and that the deadline for their payment was November 17.

While some reports said the government would pull the two companies’ operating licenses should the debts not be paid, Rudiantara clarified that it would actually be their frequency license that would be revoked. However, as their services are dependent on being able to utilize the 2.3 GHz spectrum, pulling that license would effectively prevent them from operating.  

Rudiantara also confirmed that First Media, rather than promising to pay their debt before the deadline, had instead filing a lawsuit on November 2 against his ministry’s Directorate General of Resources and Equipment of Post and Information Technology (DG SDPPI) that would allow for a delay in their payment.

“If you were [the Ministry of Communications] and trying to collect from them, and then you were sued, how would you feel?” Rudiantara said yesterday as quoted by Detik.

Rudiantara said that his ministry were coordinating with the Attorney General’s Office but while deliberations over the lawsuit were still ongoing, the government would stick to its November 17 deadline. He also said that some sort of settlement was a possibility.

On Saturday, First Media released a statement acknowledging the debt and their lawsuit but claimed that it would not affect their customer service.

But Rudianatara acknowledged the possibility that the companies’ customer services could be cut off as a result of the government revoking their frequency license and said it would be up to the two company’s to bear that responsibility.

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.