Internet Protocol Television in Indonesia

The Department of Communication and Information has realized that there is an ever-increasing expansion and development of relevant technology that is leading to a convergence of integrated telecommunications, broadcasting, and electronic transactions. One of these is Internet Protocol Television or IPTV. In a number of instances providers of IPTV are ready to go but have not done so because the regulatory framework has not been properly in place. However, the Minister of Communications and Information has sort to rectify this deficiency through the issue of Regulation No. 30/PER/M.KOMINFO/8/2009.

The basic rationale for the regulation is that the regulation is needed in order to provide legal certainty in support of the infrastructure that already exists and the providers that are ready to move forward with IPTV.

The objectives of the regulation are to drive investment in infrastructure development; improve efficiency; drive growth in content, including locally produced content; and, to expedite electronic transactions.

Providers are defined in Article 4. Generally, the expectation is that providers will be consortiums. These consortiums must have at least two Indonesian incorporated entities as partners. Foreign ownership of shares in a consortium is permitted pursuant to prevailing laws and regulations.

Providers must supply Internet Protocol Set-Top-Box (IP-STB) for use with IPTV. The regulation sets out that domestically produced components must comprise at least 20% of the total component content. This is to rise to 50% of five years.

The regulation also deals with service quality issues related to matters of network, reception, responsiveness, and customer care.

To become a provider requires a written application to be submitted to the Minister. This application must include the following, among others:

Once the completed application is submitted a check to verify the application will be made within 15 working days. Then, an ‘in principle’ approval or a rejection of the application will be issued within a further 30 working days.

The in principle agreement allows the provider to apply to the Minister to undertake a field operational test. Once the application for the test is made the provider has 15 days to complete the test.

The regulation has been in force since 19 August 2009.