Facebook Faces Blocking, What are the Potential Losses?

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Adi Ahdiat 29/06/2022 14:10 WIB

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If Facebook is blocked in Indonesia, the company could lose 129.85 million users and potentially US$580.43 million (approximately Rp8.6 trillion) in quarterly revenue.

Estimated Number of Facebook Users and Revenue from ARPU* in Indonesia (Q1 2022)

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Estimated Number of Facebook Users and Revenue from ARPU* in Indonesia (Q1 2022)

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The Ministry of Communication and Information Technology (Kominfo) reports that thousands of Electronic System Organizers (PSEs) or private internet companies have yet to complete their business licensing administration in Indonesia, including Facebook.

Facebook faces the threat of being blocked if it fails to complete this administrative process by next month.

“If PSEs do not register by the deadline of July 20, 2022, unregistered PSEs will be considered illegal in Indonesian jurisdiction. And if categorized as illegal, blocking can be implemented,” stated the Ministry of Kominfo in its press release on Monday, June 27, 2022.

According to data compiled by Statista, in January 2022, Facebook had approximately 129.85 million monthly active users in Indonesia.

According to Meta's financial report, Facebook generated an average revenue per user (ARPU) of US$4.47 from each monthly active user in the Asia Pacific region in Q1 2022.

Using this data, if Facebook is blocked in Indonesia, the company could lose at least 129.85 million monthly active users and potentially lose US$580.43 million or approximately Rp8.6 trillion in revenue per quarter.

This potential loss represents approximately 2% of Facebook's total Q1 2022 revenue of US$27.9 billion or approximately Rp413.77 trillion.

According to Katadata.co.id, as of Tuesday, June 28, 2022, Facebook has yet to confirm its progress on business license administration and the blocking threat from the Ministry of Kominfo.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Facebook Faces Blocking, What are the Potential Losses?

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