Indonesia to review licensing framework on OTT services

16 Jul 2015

Indonesia’s Ministry of Communications and Information Technology (also known locally as Kemenkominfo) has said it intends to review the legal position concerning the licensing of over-the-top (OTT) service providers, with a view to treating them the same as traditional telcos. Local online portal IndoTelko quotes the communication and IT minister Rudiantara as saying that with regulations for mandating OTT operators to have licences similar to those of telcos under discussion in Europe, Indonesia intends to study new regulations for the local market after decisions have been taken there. According to the minister, if it is agreed that an OTT provider must be licensed, then that should be done on the same terms as a service provider. ‘We are aiming to resolve the international OTT players first, then the locally owned OTT players, as they must be treated equally. I already urged foreign players to establish their companies in Indonesia, so they will not be surprised when the new regulation is issued,’ he said. Rudiantara added that the proposed new licence obligation on OTT providers would be ‘more effective’ because it will include a stipulation that they must also pay a telecommunication Operation Rights Fee (or BHP).