M-Web restructures to boost revenue

JAKARTA (JP): Internet group PT M-Web Indonesia is planning to lay off some of its employees as part of a crucial restructuring plan aimed at improving revenue, lowering costs and enhancing the level of service for new and existing customers, according to a top official at the company.

"Staff reductions have been discussed in detail with management and supervisors, and decisions were considered over a three-week period to ensure a fair process," M-Web Indonesia chief executive officer Stephen Gilmour said.

Currently, M-Web Indonesia, the country's biggest Internet company, employs a total of 618 personnel, of whom about 50 will be laid off. No timetable has been set for the layoff.

The company manages four websites, namely Astaga, Kafegaul, Satunet and M-Web, with total pageviews reaching 1.4 million per day.

M-Web Indonesia also offers the M-Web/Exelcom mobile service, which receives 1,500 calls per day, and is an Internet Service Provider (ISP) with 3,500 subscribers, including 240 corporate subscribers.

"Overall our business is continuing to expand rapidly," said Gilmour.

The restructuring program will direct M-Web Indonesia to focus on three main business divisions, namely enterprise services, consumer services and the M-Web Anywhere.

M-Web Indonesia is part of MIH Limited, a Nasdaq-listed media company based in South Africa. It currently operates 15 Internet Centers, including at the University of Indonesia, Gadjah Mada University and Trisakti University. MIH has Internet operations throughout Africa, China, Thailand, Greece and Indonesia.

Established in May 2000, M-Web Indonesia has grown rapidly to become one of the largest Internet solutions providers in the country. Its core businesses include Internet Centers, ISP, portals, data center management, business solutions and mobile services.(03)