Indosat liquidates broadband unit IM2 over corruption case

Indosat liquidates broadband unit IM2 over corruption case

Indosat Ooredoo is shuttering its fixed broadband unit Indosat Mega Media (IM2) on the orders of the South Jakarta District Attorney.

Local outlet detikINET quoted Indosat Ooredoo’s SVP Head of Corporate Communications Steve Saerang as saying that the operator “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.”

detikINET reports that the move relates to a corruption case from 2014-2015 in which Indosat and IM2 stand accused of “cooperation in internet operation” on the 2.1GHz frequency band, with the latter firm using the band despite having no right to do so. Reportedly, IM2 also failed to pay spectrum usage taxes worth IDR1.35 trillion (US$94 million) to the Indonesian government. Indar Atmanto, the former director of IM2, is reportedly the “main suspect in this case.”

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