[ via the Edge Daily ]

Astro All Asia Network plc’s Indonesian unit has been ordered by regulators to temporarily halt broadcast pending the fulfilment of several requirements, Indonesian media reported on April 11. According to a notice posted on Astro Nusantara’s website, broadcast had been halted from 10am on April 11 and would resume “several hours after inspection (by the telecommunications regulator) is completed”, without saying how long the inspection will last.


Indonesia’s Department of Communications and Information (Depkominfo) director general Basuki Yusuf Iskandar told Indonesian media that broadcast will be allowed to resume once Astro Nusantara or PT Direct Vision fulfils all its obligations.

“There are several processes that need to be fulfilled, and the most important in this context is the radio station permit (Izin Stasiun Radio — ISR). They will also need to pass inspections on their operations (Uji Layak Operasi – ULO),” Basuki told the Antara news agency.

Astro Indonesia had also earlier not paid the fees for the right to use the broadcasting frequencies, although it has since done so, the Antara report said.

“We are now waiting for the go-ahead from the regulators (to resume broadcast) as we have fulfilled all requirements,” PT Direct Vision vice president corporate affairs Halim Mahfudz told Antara.

Separately, in an emailed reply to Bloomberg, Astro said: “Arrangements are being made for the issuance of the new operating licence as required under the Indonesian broadcasting law… The matter is being dealt with by the shareholders and management of Direct Vision."

Astro shares slipped eight sen or 2.3% to close at RM3.40 on April 11. The stock ended the week down 18 sen or 5% from the RM3.58 closing price the week before.

The temporary broadcast halt is the latest of the series of issues faced by Astro in Indonesia. The tough environment in Indonesia has been weighing on Astro’s stock price for some time, so much so that many investors are in favour of Astro making a quick exit and cut its losses there.

Just last month, the Astro management had told analysts that the company would continue to expand its business in Indonesia for as long as the Astro board felt it was viable to do so. Astro would need to take in a RM200 million loss should it decide to end the Indonesian venture. In the mean time, it costs Astro around RM20 million a month to keep its operations in Indonesia afloat. Astro Indonesia is still at least three to five years away from breaking even.

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