MCIT issues draft regulation on OTT in Indonesia

5 May 2016

Indonesia’s Ministry of Communications and Information Technology (MCIT, also known locally as KemenKominfo) has published a draft ministerial regulation governing the provision of content over the internet by over-the-top (OTT) providers. IndoTelko writes that, before being put into effect, the regulation is being tested publicly until 12 May 2016. In brief, the draft requires that: the OTT operate in the form of a permanent establishment [but can be] either foreign or local players; OTT players must register their business forms and activities to the Indonesian Telecommunications Regulatory Body (ITRB) no later than 30 working days prior to providing services in Indonesia by attaching the required documents; and, if the OTT is in the form of foreign direct investment (FDI) then they shall attach the permanent business licence from the Investment Coordinating Board (BKPM). Furthermore, it is understood that the regulation will also require the OTT service provider ‘to comply with the provisions of the legislation in the field of: prohibition of monopolistic practices and unfair business competition; trading; consumer protection; intellectual property rights; broadcasting; film; advertising; pornography; anti-terrorism; taxation; transportation and logistics; tourism and hospitality; finance; health; and / or regulations and other relevant legislation.’

Indonesia, Ministry of Communication and Information (MCI)