M-WEB Indonesia sells assets, cut jobs
M-WEB Indonesia sells assets, cut jobs
The Jakarta Post, Jakarta
Leading Internet firm M-WEB Indonesia, a subsidiary of South
Africa-based telecommunications firm Myriad International
Holdings (MIH), has sold most of its assets and is cutting the
number of workers as part of a massive business restructuring.
Company president David Burke told The Jakarta Post Friday
that the company has sold both its corporate service and Internet
service provider (ISP) business to local firm PT Indonet, while
its Internet center business has been sold to local firm PT Java
Invest.
The company would keep its portal business and mobile online
service, but the number of workers at both divisions would be
gradually reduced from 105 at present to 25 in March next year,
Burke said.
After the restructuring, the Indonesian operation would be put
under the supervision of MIH management in Thailand, he said.
Burke said MIH was still committed to Indonesia, while the
restructuring was aimed at making its business in Indonesia "more
profitable".
MIH, with subsidiaries in many countries in Africa, Europe and
Asia, entered Indonesia about three years ago by establishing M-
WEB Indonesia amid euphoria over Internet businesses.
In the first phase of its operation, it acquired several
portal companies, including Astaga.com, Satunet.com and
Kafegaul.com after beginning with its own portal MWEB.co.id. It
also entered the ISP business by acquiring a local ISP named
Cabinet.
As part of its aggressive expansion, it later set up Internet
centers in several universities across the country and launched a
corporate service division, which assists corporate clients in
the development of computer networks and software, website design
and programming.
Early this year, the company said it had invested US$20
million in Indonesia.
According to Burke, M-WEB's corporate service division and the
ISP business had 2,000 clients and 5,000 clients respectively,
when both were sold to PT Indonet. Both have a total of 110
workers, most of whom will be retained by the new owner, while
the rest of the workers will be laid off in accordance with
existing government regulations.
The Internet center division operated 24 giant Internet kiosks
across the country with a total of 1,400 computers when it was
sold to Java Invest. This division has 270 workers, most of whom
will be retained by the new owner.
Burke refused to unveil the value of deals with Indonet and
Java Invest.
M-WEB will continue operating its portals Astaga.com,
Kafegaul.com, and Satunet.com, but it will close down MWEB.co.id,
Burke said, adding that all the portals recorded a 1.6 million
page views per day.
It will also keep its mobile online business, which provides
services to several local cellphone operators, including
Excellcomindo and IM-3.