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Telecom operators anxious on Indonesia's court ruling on common business practice
Last Updated:2013-07-09 22:03 | Xinhua
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Indonesia's telecommunication business was confused with the recent four-year imprisonment sentence issued by anti-corruption court against a former director of a telecommunication operator whom the court charged of committing corruption for common business practice in the telecommunication industry.

Such a sentence has incited anxiety among telecommunication officials and business operators who feared it might affect the way of doing such business and jeopardize foreign investors' willingness to invest in the impressively growing sector in the country.

The sentence was issued in a trial on Monday against IM2 telecommunication operator Indar Atmanto whose firm set up a joint business service with prominent telecommunication provider Indosat in providing Internet access to their subscribers.

The IM2 and Indosat were found guilty for jointly using the 2.1 GHz radio frequency owned by Indosat to provide Internet service for their subscribers, a way that the court found it violated the existing regulation that requires the minister's consent to do so.

With such a business practice, the court said that the jointly- operated firm has an intention to avoid paying "up front fee" to the state. The court also said that the firm was aware that 2.1 GHz radio frequency is prohibited for public use unless it was allowed by the minister.

During the trial held in the anti-corruption court of Tipikor on Monday, the judge also fined Indar Atmanto and Indosat 200 million rupiah (about 20,000 U.S. dollars) and 1.4 trillion rupiah (about 140 million U.S. dollars) respectively.

In the previous trial against Indar Atmanto, the prosecutor demanded ten years in imprisonment.

Responding the court's ruling, Indonesian Communication and Information (Kominfo) Minister Tifatul Sembiring said that it may spark investors' anxiety to invest in the country's telecommunication sector.

"I am very concerned about this case. I have ordered my legal bureau to take further study on the recent legal ruling and I would report the results to the president," the minister said.

According to him, the president has reminded cabinet ministers to be responsive in stimulating the investment atmosphere in a time when economic difficulties still linger in the world.

He added that the case has drawn serious attention from domestic and foreign telecommunication operators. "They would question the legal certainty in Indonesia. I would say that if IM2 and Indosat were not satisfied with the sentence, they can file in an appeal to a higher court," the minister said.

The rapid growing telecommunication business has significantly contributed to the country's total investment. The minister said earlier that the telecommunication industry had grown 10 percent in the last few years.

Setyanto Santosa, chairman of Indonesian Telemathics Association said Tuesday that the judge panel was not wise enough in dealing with this case as they did not take the opinion of the Kominfo minister, who is the regulator of the business, into consideration.

He said that the association would bring the case to the judicial commission, a state-sanctioned legal institution that receives public complaints on judges who is considered incapable of carrying out their duty.

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