Sad story. But why were they entering coordinates in the first place, rather than airport designators and waypoints? (Not to mention the bit about them reading them from a piece of card held in front of the aircraft - reminiscent of Three Men in a Boat).
And why did entering the wrong coords cause a terrain alert?
Luckily this just turned into an amusing story. But I wouldn't be in a big hurry to fly with Air Asia.