IM2 former director imprisoned over misuse of spectrum fees

9 Jul 2013

Indar Atmanto, a former director of Indonesian telecoms operator Indosat Mega Media (IM2), has been imprisoned for four years by the Jakarta Corruption Court for his misuse of 3G/HSDPA broadband spectrum owned by parent group Indosat, and ordered to pay fines totalling IDR200 million (USD20,000), The Jakarta Post reports. The official’s actions whilst at IM2 are understood to have cost the government up to IDR1.36 trillion. Indar was found guilty of illegally using Indosat-owned spectrum to offer wireless services through IM2, with chief judge Antonius Widjantono quoted as saying: ‘The defendant is proven legally and convincingly guilty of grafting’. The court’s verdict was based on Article 2 Paragraph 1 of Law No. 31/1999 on Eradicating Criminal Act of Corruption, as amended by Law No 20/2001 relating to Article 55 Paragraph 1 of the Criminal Code, the chief judge said.

Although the parent company was allocated rights to use the 2.1GHz band at a subsidised rate – by dint of it being partly state-owned – the firm took the decision to extend the rights of usage to IM2 (a privately owned company) contrary to local rules, and as such denying the government the requisite spectrum fees. In the corruption court ruling, the subsidiary was also ordered to pay up fines of IDR1.36 trillion to offset state losses. The former president – who had faced up to ten years in jail – is thought to have lodged an appeal against the court ruling.

Indonesia, Indosat Ooredoo (incl. IM2)