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T Indosat Mega Media (IM2), a subsidiary of mobile phone operator, PT Indosat, said they would request that the Corruption Court nullified the charges filed against them by the Attorney General’s Office (AGO) due to irregularities.

IM2, an Internet service provider (ISP), faced off with the AGO at their first hearing on Monday at the Corruption Court in South Jakarta. During the hearing, the AGO connected Indar Atmanto, the former president director of IM2, to corruption charges concerning the provision of broadband services.

The case between the AGO and IM2 began in 2011, when the AGO alleged that IM2 was using the 2.1 gigahertz frequency — the frequency utilized to provide broadband services — without the proper permission from the government.

The AGO also accused IM2 of causing Rp 1.3 trillion in state losses, based on audit results from the Finance and Development Comptroller (BPKP).

Luhut Pangaribuan, the attorney for IM2, said that Indar “could not fathom the charges” filed by the AGO.

IM2 has repeatedly pointed out that they do not manage the 2.1 gigahertz frequency. Their parent company, Indosat, manages this frequency after winning a tender held by the Communications and Information Ministry.

IM2 added that, as an ISP and by signing a contract with Indosat, they acted as a bridge between Internet subscribers and the network run by Indosat. Other ISPs have signed similar contracts with Indosat.

Luhut added that involving Indar in the charges was another issue, given that the deal between IM2 and Indosat was between companies.

“The charges contain errors in persona,” he told The Jakarta Post.

He said that another irregularity was the use of the Corruption Law, instead of the Telecommunication Law.

“This comes out of criminalizing the telecommunication industry,” Luhut said.

He added that IM2 would prepare their defense statement for the following court hearing, scheduled for next Monday.

“The defense will provide reasons why the charges should be found legally null and void,” he said. “In this way, the trial has to be ceased.”

Setyanto P. Santosa, the chairman of the Indonesian Telematics Society (Mastel), said that 279 other ISPs run the risk of running afoul of the AGO if IM2 were to be declared guilty.

He pointed out that contracts between mobile phone operators and ISPs were common in the industry.

The Communications and Information Ministry have equivocally said that this common practice was not in violation of the law.

“The case could spell the doom of the Internet in Indonesia because Indonesians would have no means of accessing the Internet if ISPs ceased to exist,” he said.

He added that the AGO had erroneously grasped the technicalities related to telecommunications and had ignored the input provided by telecommunication regulators and industry.

Setyanto added that the society, whose members include major telecommunication companies, would continue conveying to the AGO that IM2 has not violated any law.

“This is not a matter of defending only one company, it is about defending the industry,” he said.

The AGO initially estimated that IM2 caused Rp 3.8 trillion in state losses. However, IM2 pointed out that they are exempted from paying those fees because Indosat, as the network operator, was responsible for footing the fees.

Indosat had paid at least Rp 1.8 trillion to the government for the right to use the frequency. Eventually, IM2 was alleged to have caused Rp 1.3 trillion in state loss.

Indosat owns 99.85 percent of IM2. Meanwhile, 65 percent of Indosat belongs to Qatar Telecom (Qtel Asia), 15.09 percent the public, 14.29 percent the Indonesian government and 5.62 percent SKAGEN AS.

Setyanto added that the case was “discouraging” investment in the telecommunication industry.

“And a lot of these ISPs are local companies,” he said.