Not seen it, the tragic death of the Indonesian boxer, but if you're in a prize fight and you need it stopped, you don't raise your hands - you go down, on a knee or more. Not seen it, so it's not obvious how bad the actions of the referee were.
Taking a knee is something that should be taught more in boxing gyms. The top top fighters often do it. Cotto did against Margarito. Haye did against Mormeck, Berto did against Ortiz, sometimes you just need to get your senses back and it can be a critical moment where those 10seconds can be the difference between an imminent knockout and a massive recovery.
Sadly it is seen as dishonorable or cowardly and isn't mentioned in most boxing gyms, so fighters stay upright when getting their senses beaten out of them.