Indonesian subscribers of cable television Astro can smile this Idul Fitri as Malaysia's Astro All Asia Network Plc. has extended service via local operator PT Direct Vision (DV).

Astro has agreed not to terminate its program on Oct.1 and has extended the grace period indefinitely, DV senior president for corporate affairs Halim Mahfudz told The Jakarta Post on Monday.

"The extension period remains undetermined. The decision is in Astro's hands. They should have terminated the program on Sept. 30," said Halim, adding the extension was granted out of "good will in celebrating the Idul Fitri holidays".

Muslims account for the largest proportion of the population in Indonesia and Malaysia and will celebrate the Idul Fitri holiday on Oct. 1 and 2.

Astro has more than 100,000 subscribers in Indonesia.

Earlier this month, Astro decided to not to renew its contract with DV, which is 49-percent owned by the Lippo Group unit, over allegations the latter failed to pay a US$245 million bill.

Beginning Aug. 31, the day the contract was set to end, DV had a 30-day grace period to make alternative arrangements to mitigate the impact on its 100,000 subscribers.

Halim said the company was still looking for instructions from its shareholders on a subscriber compensation arrangement as such redress is mandatory under the country's consumer protection law.

Astro's local spokesman Alexander Lay said he was not aware of the head office's decision to provide an extension to DV, saying the publicly-listed company should have first made the announcement on the Malaysian stock exchange.

The extension was likely granted after the company realized it would be "inappropriate" to break ties with DV during the holidays, a source who preferred to remain anonymous has said.

According to recent Malaysian media reports, the breakup of Astro's joint venture is the latest in a series of business rows between the Lippo Group -- now under the helm of James Riady -- and the Malaysian business group controlled by high-profile tycoon Ananda Krishnan. -- JP/Ika Krismantari

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