The biggest telecommunications provider in Indonesia, Telkomsel, was declared bankrupt earlier today by the Central Jakarta’s State Court. According to Indonesian law, any companies that don’t pay debts beyond the maturity date to more than two companies will be deemed bankrupt. That is exactly what happened to the telco giant, which still boasts more than 100 million subscribers in the country.
This all started because Telkomsel indefinitely froze its deal with its voucher top-up distributor Prima Jaya over the Prima voucher cards. The deal is reported to be worth more than IDR 200 billion ($21,000,000). It was supposed to continue for one more year, but on June 2012, Telkomsel stopped the deal indefinitely without providing any clear reason. Prima Jaya went on to suffer IDR 5.3 billion ($557,601) [1] in losses because of it, and the company then tried to settle the issue in court.
The other debt that the telco giant failed to pay is to content provider PT Extent Media Indonesia. According to Bisnis, the company has been suing Telkomsel since November 2011. The telco has not paid a sum of money as agreed upon in a cooperation agreement stretching from July to September 2011.
Telkomsel’s operations will continue normally at the moment. The company has not issued any comments regarding this fiasco, but promises via Detik that they’re going to appeal this decision.
[Source: Detik, Original Image Source]
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BeritaSatu reported that the potential loss for Prima Jaya can worth up to IDR 200 billion.
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