#Asia The fate of Internet giants operating in Indonesia is finally decided


The Minister of Communications and Informatics announced draft regulation, public hearing to open until May 12


In February, the Indonesian government through Ministry of Communications and Informatics first announced its plan to issue regulation for streaming and messaging providers, as well as social media websites, that is expected to complete in March.

Today the Ministry announced the draft regulation on App Services and Internet Content Provider (Permen OTT) that will regulate OTT services and Internet companies from Netflix, Google, Twitter, to Facebook.

Internet companies will be allowed to operate in the country if they manage to fulfill several requirements involving taxation and the setting up of a national payment gateway.

Also Read: What’s the latest update with the tax drama for Indonesia’s Internet giants?

The following are key points from the draft regulation:

1. Foreign OTT and Internet companies are required to set up permanent ventures in Indonesia
2. Companies need to perform data protection and data privacy as stated in the constitution
3. For paid services, companies need to utilise a national payment gateway that already has a permanent venture in Indonesia
4. Companies to utilise Indonesian IP address and put partial server on a data center located in Indonesia
5. Companies to provide access for lawful interception for crime investigation
6. OTT service providers are allowed to partner with telco operators. However, in the case where an OTT service provides a service that is similar or may substitute that of a telco operator, then they are obliged to partner with telco operators or to become a telco operator itself.
7. Companies to provide detailed contact information for customer service purposes
8. Companies are also obliged to keep and maintain traffic and transaction data for at least three months for legal purposes

The government will open public hearing for the regulation until May 12.

More on this story as it develops.

Image Credit: Qusai Akoud on Unsplash

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