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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, ANT
The Government has finally decided to take action against foreign internet content and application providers to which it refers as “Over-the-Top” (OTT) Services. Indonesia’s Minister of Communications and Information Technology, Rudiantara, is responsible for the issuance of Circular Letter No. 3 of 2016 on Over-the-Top Service Providers (“Circular”), which stipulates that all foreign OTT service providers operating, or seeking to operate, in Indonesia must be registered as permanently established businesses (bentuk usaha tetap - BUT). With this end in mind, the Circular specifically states that, “Foreign OTT service providers must be permanently established businesses in Indonesia according to the prevailing laws and regulations on taxation.”
This Circular aims to offer an answer to the increase in foreign OTT service providers offering communications (audio, video, and text) or content (music, games, etc.) services through internet connections hosted by Indonesian telecommunications providers. In the wake of the issuance of the Circular, foreign OTT service providers are expected to adhere to all of Indonesia’s prevailing laws and regulations. A complete ministerial-level Regulation on foreign OTT service providers, according to Minister Rudiantara, will subsequently be issued within the second half of the first semester of 2016.
Besides the obligation to establish permanent businesses, the Circular sets out a number of other obligations relating to both Indonesian and foreign OTT service providers. For example, OTT service providers are obliged to employ censorship mechanisms, as regulated by Ministerial Regulation, as well as to use national payment gateways and Indonesian internet protocol numbers, etc.
Minister Rudiantara recently issued a statement asserting that the Circular was a necessary measure in order to prevent discriminative behavior between foreign and domestic OTT providers. The minister also claimed that it was necessary for both foreign and domestic OTT providers to fully satisfy all of the applicable regulations in this country so that fair competition could be achieved. Furthermore, such compliance is also required in order to ensure sufficient protection for the general public as regards any possible losses.
Finally, Minister Rudiantara also asserted that the government would initiate a process of public consultation before formulating a more comprehensive OTT provision through the issuance of a ministerial regulation. Such a public-consultation process is considered to be of great importance in order to ensure that all relevant input from stakeholders is well-received and will eventually be used to formulate the ministerial regulation.
This Circular aims to offer an answer to the increase in foreign OTT service providers offering communications (audio, video, and text) or content (music, games, etc.) services through internet connections hosted by Indonesian telecommunications providers. In the wake of the issuance of the Circular, foreign OTT service providers are expected to adhere to all of Indonesia’s prevailing laws and regulations. A complete ministerial-level Regulation on foreign OTT service providers, according to Minister Rudiantara, will subsequently be issued within the second half of the first semester of 2016.
Besides the obligation to establish permanent businesses, the Circular sets out a number of other obligations relating to both Indonesian and foreign OTT service providers. For example, OTT service providers are obliged to employ censorship mechanisms, as regulated by Ministerial Regulation, as well as to use national payment gateways and Indonesian internet protocol numbers, etc.
Minister Rudiantara recently issued a statement asserting that the Circular was a necessary measure in order to prevent discriminative behavior between foreign and domestic OTT providers. The minister also claimed that it was necessary for both foreign and domestic OTT providers to fully satisfy all of the applicable regulations in this country so that fair competition could be achieved. Furthermore, such compliance is also required in order to ensure sufficient protection for the general public as regards any possible losses.
Finally, Minister Rudiantara also asserted that the government would initiate a process of public consultation before formulating a more comprehensive OTT provision through the issuance of a ministerial regulation. Such a public-consultation process is considered to be of great importance in order to ensure that all relevant input from stakeholders is well-received and will eventually be used to formulate the ministerial regulation.
(rfs/sp)
Marcell Sihombing, ANT
The Government has finally decided to take action against foreign internet content and application providers to which it refers as “Over-the-Top” (OTT) Services. Indonesia’s Minister of Communications and Information Technology, Rudiantara, is responsible for the issuance of Circular Letter No. 3 of 2016 on Over-the-Top Service Providers (“Circular”), which stipulates that all foreign OTT service providers operating, or seeking to operate, in Indonesia must be registered as permanently established businesses (bentuk usaha tetap - BUT). With this end in mind, the Circular specifically states that, “Foreign OTT service providers must be permanently established businesses in Indonesia according to the prevailing laws and regulations on taxation.”
This Circular aims to offer an answer to the increase in foreign OTT service providers offering communications (audio, video, and text) or content (music, games, etc.) services through internet connections hosted by Indonesian telecommunications providers. In the wake of the issuance of the Circular, foreign OTT service providers are expected to adhere to all of Indonesia’s prevailing laws and regulations. A complete ministerial-level Regulation on foreign OTT service providers, according to Minister Rudiantara, will subsequently be issued within the second half of the first semester of 2016.
Besides the obligation to establish permanent businesses, the Circular sets out a number of other obligations relating to both Indonesian and foreign OTT service providers. For example, OTT service providers are obliged to employ censorship mechanisms, as regulated by Ministerial Regulation, as well as to use national payment gateways and Indonesian internet protocol numbers, etc.
Minister Rudiantara recently issued a statement asserting that the Circular was a necessary measure in order to prevent discriminative behavior between foreign and domestic OTT providers. The minister also claimed that it was necessary for both foreign and domestic OTT providers to fully satisfy all of the applicable regulations in this country so that fair competition could be achieved. Furthermore, such compliance is also required in order to ensure sufficient protection for the general public as regards any possible losses.
Finally, Minister Rudiantara also asserted that the government would initiate a process of public consultation before formulating a more comprehensive OTT provision through the issuance of a ministerial regulation. Such a public-consultation process is considered to be of great importance in order to ensure that all relevant input from stakeholders is well-received and will eventually be used to formulate the ministerial regulation.
This Circular aims to offer an answer to the increase in foreign OTT service providers offering communications (audio, video, and text) or content (music, games, etc.) services through internet connections hosted by Indonesian telecommunications providers. In the wake of the issuance of the Circular, foreign OTT service providers are expected to adhere to all of Indonesia’s prevailing laws and regulations. A complete ministerial-level Regulation on foreign OTT service providers, according to Minister Rudiantara, will subsequently be issued within the second half of the first semester of 2016.
Besides the obligation to establish permanent businesses, the Circular sets out a number of other obligations relating to both Indonesian and foreign OTT service providers. For example, OTT service providers are obliged to employ censorship mechanisms, as regulated by Ministerial Regulation, as well as to use national payment gateways and Indonesian internet protocol numbers, etc.
Minister Rudiantara recently issued a statement asserting that the Circular was a necessary measure in order to prevent discriminative behavior between foreign and domestic OTT providers. The minister also claimed that it was necessary for both foreign and domestic OTT providers to fully satisfy all of the applicable regulations in this country so that fair competition could be achieved. Furthermore, such compliance is also required in order to ensure sufficient protection for the general public as regards any possible losses.
Finally, Minister Rudiantara also asserted that the government would initiate a process of public consultation before formulating a more comprehensive OTT provision through the issuance of a ministerial regulation. Such a public-consultation process is considered to be of great importance in order to ensure that all relevant input from stakeholders is well-received and will eventually be used to formulate the ministerial regulation.
(rfs/sp)