Database

Regulation 6/2017 introduces the requirement that IPTV providers shall provide Internet Protocol Set-Top-Boxes with a minimum local content requirement of 20%, with the amount rising to 50% within five years of starting operations in Indonesia.

Furthermore, the IPTV operator shall provide at least 10% of domestic content during its broadcasting services, 30% during its multimedia services, and "the number of domestic Independent Content Providers contributing to the implementation of IPTV services shall be at least 10% of the number of Content providers in the Content Library of the Organizer and gradually increase to 50% within five years." (own translation; Art. 17(3) of the regulation).

The Ministry of Trade's Regulation 82/2012 prevents importers of cell phones, handheld computers, and tablets are not permitted to sell directly to retailers or consumers, and they must use at least three distributors to qualify for a MOT importer license.

A first amendment, Regulation 38/2013, imposes requirements on importers of mobile phones, handheld computers and tablets to prove previous import activities and local aftersales activity as well as requirements regarding the distribution and the establishment of industrial activity in Indonesia.

A later amendment, Regulation 68/2016, included new licensing requirements for different types of importers of tablets, cellular phones, and handheld computers. These differ depending on:
- whether the importer is working with an Indonesian producer,
- whether the importer is also the producer of the goods,
- whether the imports are conducted with a specific purpose (i.e., specialized orders) or in relation to after-sales services.
Out of the three categories, the licensing procedure is the longest for the second category.

The US and Japan expressed their concerns about this regulation at the WTO Committee on Import Licensing. They stated that the products at issue might not be imported without an approval from the MOT and must be imported by a registered importer.

Indonesia's government issued a new regulation in July 2015 on the mandatory use of local components in 4G smartphones distributed in Indonesia. The regulation requires all smartphone brands to have at least 30% local components by January 2017 and 40% for base transceiver stations (BTS).

The Ministry of Trade's Regulation 38/2013 imposes requirements on importers of mobile phones, handheld computers and tablets to prove previous import activities and local aftersales activity as well as requirements regarding the distribution and the establishment of industrial activity in Indonesia. The US and Japan expressed their concerns about this regulation at the WTO Committee on Import Licensing. They stated that the products at issue might not be imported without an approval from the Ministry of Trade and must be imported by a registered importer.

Regulation 07/2009 (Art. 17) and Regulation 19/2011 require that equipment used in wireless broadband services should contain local content of at least 30% for subscriber stations and 40% for base stations and that all wireless equipment should contain 50% local content within 5 years.

In October 2009, Decree 41/PER/M.KOMINFO/10/2009 required Indonesian telecommunication operators to expend a minimum of 50% of their total capital expenditures for network development on locally sourced components or services. Decree 41 also requires companies to annually report the percentage of local content procured and have that information “authenticated” by the government or a survey institute appointed by the government.

It is reported that Indonesian importers must comply with numerous and overlapping import licensing requirements that impede access to Indonesia’s market. Regulation 70/2015 by Ministry of Trade (MOT) came into effect in January 2016, replacing MOT Regulation 27/2012. The new regulation requires all importers to obtain an import license as either importers of goods for further distribution (API-U) or as importers for their own manufacturing (API-P), but importers are not permitted to obtain both types of licenses.

In addition, Regulation 87/2015 maintains non-automatic import licensing requirements on a broad range of products, including electronics. However, for holders of an API-U license, Regulation 87/2015 appears to eliminate the additional requirement to register as an importer of certain products.

The Ministry of Trade's Regulation 38/2013 imposes requirements on importers of mobile phones, handheld computers and tablets to prove previous import activities and local aftersales activity as well as requirements regarding the distribution and the establishment of industrial activity in Indonesia. The US and Japan expressed their concerns about this regulation at the WTO Committee on Import Licensing. They stated that the products at issue might not be imported without an approval from the Ministry of Trade and must be imported by a registered importer.

In 2009, the Indonesian government implemented non-automatic import licensing procedures on a broad range of products, including electronics. Decree 56 was extended by the Ministry of Trade in 2010 and again in December 2012 through the Regulation 83/M-DAG/PER/12/2012. The amended Decree retains a requirement for pre-shipment verification by designated companies at the importers’ expenses and a restriction that limits the entry of imports to designated ports and airports. Indonesia has informally limited the application of the Decree to “final consumer goods”.

Furthermore, in July 2014, the Indonesian Ministry of Trade issued a second amendment 36/M-DAG/PER/7/2014 regarding ports of entry and mandatory provisions at loading ports. It includes the verification at the loading port of Notification Letter or Distribution Permit Agreement Letter for certain products that are regulated.

It is reported that there is an arbitrary filtering by Ministry of Communication and Information (MCI/Kominfo) is made using government-promoted systems like DNS Nawala and TRUST Positif. Filtering in Indonesia is reported as unsystematic and inconsistent.

Netflix has been blocked by Telekom Indonesia - Indonesia's biggest internet service provider - which is state-owned. The stated reasons included issues about validity of Netflix's permit and raised concerns about objectionable content: violence and adult content.

It is reported that there is an arbitrary blocking by Ministry of Communication and Information (MCI/Kominfo) using government-promoted systems like DNS Nawala and TRUST Positif. Reddit and videosharing webiste such as Vimeo are blocked.

There is no specific provision in the Copyright Law related to a safe harbor for intermediaries. The law remains uncertain regarding the exact role and liability of Internet Service Providers (ISPs) in relation to copyright breaches.

The sanctions for breaching data privacy are found in the Electronic Information and Transaction Law (EIT Law) and Regulation 82. The EIT Law provides a maximum of 12 years' imprisonment and/or a maximum fine of 12 billion IDR (around 870,000 USD). Imprisonment may be imposed for severe breaches and intentional infringement.
Moreover, failure to comply with Regulation 82 would be subject to administrative sanctions in the forms of:
- a written warning;
- administrative fines;
- temporary dismissal;
- expulsion from the list of registrations.

Regulation 20 of 2016, an implimenting law of Regulation 82 of 2012, stipulates that consent from the data subject is necessary for the transfer of data, and that this consent should be expressed in writing.