Astro stops services in Indonesia

The Malaysian-based Astro All Asia Network broadcasting company terminated services to its customers via PT Direct Vision as of last night.

Customer A. Raharjo told tempointeraktif.com that he knew service was being terminated from the news but he had not believed it as there had been no official notification from Direct Vision, a
company under the Lippo Group via PT First Media.

"Last night even local channels such as Metro TV and SCTV suddenly disappeared. Astro's channels, for example Awani, were no more there," he said.

Visitors to Astro's local website, www.astro.co.id are redirected to www.directvisiontv.com, where the management of Direct Vision apologizes to its customers for the termination of service "until further notice". It promises to reimburse its customers who have paid in advance for any undelivered services.

Halim Mahfudz of Direct Vision said Monday the company had 98,000 customers. Out of that number, only 36,000 had paid in advance.

Last month, Astro decided to not renew its contract with Direct Vision which is 49 percent owned by the Lippo Group unit after allegations that the latter had failed to pay a $245 million
bill, which Astro had spent in Indonesia.

According to recent Malaysian media reports, the breakup of Astro's joint venture is the latest in a series of business rows between Lippo Group (with James Riady at the helm) and the Malaysian business group controlled by the high-profile tycoon Ananda Krishnan.

The two conglomerates were previously engaged in a property business in Singapore and a mobile telecommunications business in Indonesia. (rid)