The Ministry of Communication and Information Revokes Indonesia's Net1 Frequency Band Permit, Asking Companies To Pay IDR 477 Billion Fines

JAKARTA - The Ministry of Communication and Information (Kemenkominfo) has revoked the license for the 450 MHz radio frequency band to PT Net Satu Indonesia (Net1 Indonesia) on November 30 yesterday.

"The revocation of this frequency band permit is a sanction in which PT Net Satu Indonesia has not paid the bill for the Right to Use (BHP) for the Radio Frequency Band Permit for 2019 and 2020 until the specified time limit," said a spokesman for the Ministry of Communication and Information, Dedy Permadi, in his official statement, Wednesday, December 1.

Dedy explained that the revocation of the license was contained in the Decree of the Minister of Communication and Information Number 517 of 2021 concerning the Revocation of Radio Frequency Band Permits in the Range of 450 to 457.5 MHz in pairs with 460 to 467.5 MHz for the Operation of the PT Net Satu Indonesia Cellular Mobile Network.

According to Dedy, the sanction was determined in accordance with Article 481 of Government Regulation no. 5 of 2021 concerning the Implementation of Risk-Based Business Licensing, as well as other relevant laws and regulations.

As a follow-up, said Dedy, the revocation of the radio frequency band license, PT Net Satu Indonesia with Net1 Indonesia internet service has an obligation to settle the company's obligations to its customers no later than one month from the date of the revocation of the Radio Frequency Band License.

"This is done in the form of, among others, providing compensation, transferring services to other operators, and settling the rights of other PT Net Satu Indonesia customers," said Dedy.

In addition, PT Net Satu Indonesia is required to pay off the 2019 and 2020 Radio Frequency Band License BHP receivables to the state in the form of principal and late fees with a total amount of IDR 477.259.733.440.

"(The company must also) carry out other obligations, including to parties related to the operation of the mobile cellular network provided by PT Net Satu Indonesia, in accordance with the provisions of the applicable laws and regulations," explained Dedy.

Lastly, Dedy appealed to PT Net Satu Indonesia to immediately settle all of its obligations, as well as ensure consumer protection for PT Net Satu Indonesia customers.

Previously, it was reported that PT Net Satu Indonesia was known to have sued the Minister of Communications and Informatics Johnny G Plate because of the Decree of the Minister of Communication and Information No. 456 which was claimed to incriminate the company, prior to the revocation of the radio frequency band license.

However, PT Net Satu Indonesia refused to follow the decision of the Minister of Communication and Information and sued him at the Jakarta State Administrative Court (PTUN) since last Friday, April 16.