Indosat confirms shutdown of broadband unit IM2

16 Dec 2021

Indosat Ooredoo has confirmed the closure of its fixed broadband subsidiary Indosat Mega Media (IM2), resulting in the termination of the unit’s ‘Indosat GIG’ home internet service on 25 November 2021. Local news outlet detikINET cites SVP Head of Corporate Communications Indosat Ooredoo, Steve Saerang, as saying: ‘Indosat Ooredoo respects and accepts the execution of IM2 assets confiscation by the South Jakarta District Attorney based on the 2014 Supreme Court Decision … Therefore, the shareholders of IM2, Indosat Ooredoo and the Indosat Employee Cooperative, have approved the dissolution and liquidation of IM2 on 8 December 2021 and appointed a liquidator to close IM2’s operations.’ The paper notes that the decision follows a ‘corruption case’ involving the company dating back to 2014/15. The corruption is reportedly related to ‘the cooperation in internet operation’ on the 2.1GHz frequency band between Indosat and IM2, with the latter’s former director Indar Atmanto being the ‘main suspect in this case’. The legal proceedings stem from a report by an Indonesian telecommunications consumer who stated that IM2 had misused the 2.1GHz (3G) frequency band ‘even though the operator had no right to operate on the network’. In addition, IM2 reportedly failed to pay taxes to the state related to frequency usage, generating losses of IDR1.35 trillion (USD94 million) for the government.

Indonesia, Indosat Ooredoo Hutchison (IOH)