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In March 2016, Indonesia's Ministry of Communication and Informatics (MOCI) released a circular letter “Concerning the Provision of Application Services and/or Content over the Internet (OTT)”, which proposes a range of new regulations on Internet services. The packages include proposed requirements to use local IP numbers and store data within Indonesia.

It is reported that the requirements, as proposed, could present compliance problems for foreign service providers and raise competition concerns and trade barriers.

Additionally, a draft OTT regulation was issued in 2017 for public consultation and comments, signalling that the MOCI is still pressing on with these measures, although its contents may change.

In the Annex of Circular Letter of Bank Indonesia No. 16/11/DKSP Year 2014 regarding E-money Operations, there is a requirement for all operators of e-money to localise data centres and data recovery centres within the territory of Indonesia.

In Indonesia, data protection is covered by Law No. 11 of 2008 regarding Electronic Information and Transaction (EIT Law) and Government Regulation No. 82 of 2012 regarding the Provision of Electronic System and Transaction (Regulation 82), which went into force on 15 October 2012. Regulation 82 requires “electronic systems operators for public service” to set up a data center and disaster recovery center in Indonesian territory for the purpose of law enforcement and data protection.

In January 2014, the Technology and Information Ministry circulated a Draft Regulation with Technical Guidelines for Data Centers. The unclear and possibly all-encompassing definition of public services gave rise to concerns when a spokesperson was quoted saying: “[the draft] covers any institution that provides information technology-based services.” Data carriers covered by these provision, therefore, would include a wide range of actors such as cloud providers, foreign banks and mobile phone providers.

Regulation 82 states that the storing of personal data and performing a transaction with the data of Indonesian nationals outside the Indonesian jurisdiction is restricted. This requirement appears to apply particularly to personal data and transaction data of Indonesian nationals which is used within Indonesia and/or related to Indonesian nationals. The Regulation targets "electronic systems operators for public services", whose definition remains unclear.

In January 2014, the Technology and Information Ministry circulated a Draft Regulation with Technical Guidelines for Data Centers. The unclear and possibly all-encompassing definition of public services gave rise to concerns when a spokesperson was quoted saying: “[the draft] covers any institution that provides information technology-based services.” Data carriers covered by these provision, therefore, would include a wide range of actors such as cloud providers, foreign banks and mobile phone providers.

Electronic Service Providers are required to employ Indonesian citizens to operate strategic electronic systems, e.g. those for defense and national security, unless there is no suitable candidate available.

The Employment Act required that one local employee must be employed for every foreign employee. Moreover, in 2012, the government of Indonesia issued a decree prohibiting wholly Indonesian-owned companies from hiring foreign staff for senior positions. This is the case for 19 positions, which include personnel director, industrial relation manager, human resource manager, personnel development supervisor, personnel recruitment supervisor, personnel placement supervisor, employee career development supervisor and personnel administrator.

All companies willing to employ foreigners are required to apply for a written permission at the Ministry of Manpower and Transmigration. The Ministry of Manpower and Transmigration will then conduct labour market tests. Moreover, it is required that foreign service suppliers should train and educate, as well as transfer technologies and expertise to the local Indonesian employees.

PT Telekomunikasi Indonesia, the incumbent, is a semi-privatized, majority State-owned company. It has dominant market share in terms of mobile phone subscribers (approximately 45 to 50%).

It is reported that criminal raids for copyright enforcement are scarce. In 2014, the Indonesian National Police investigated 97 criminal copyright cases and the Attorney General’s Office brought 12 cases to trial. It is also reported that enforcement officials often ask rights holders to pay for the raids.

There is no explicit fair use/fair dealing clause in Indonesia. The Copyright Law (2014) provides a broad exception under Article 43(d) for “making and disseminating copyright content through information and communication technology media that is non-commercial and/or non-profit in its effect on the author or related parties, or in which the author has expressed no objection to such making or disseminating.”

Indonesia's patent law has a local manufacturing requirement. The patent holder is obliged to manufacture the patented product or use the patented process in Indonesia. The law also lays down that non-compliance with the requirement within 36 months from the grant of the patent triggers the possibility to issue a compulsory license or the abolishment of the patent. This provision could prevent the patenting of products, produced by any industry, that are not manufactured in Indonesia.

The Patent Law promotes the local production by requiring the patent holder to make the patented products or use the patented process in Indonesia. He/she can be exempted from this obligation only if the making of the product or the use of the process is suitable to be implemented on a regional scale.
In the patent application process, applications filed by an inventor/applicant who does not reside or does not have a fixed domicile in Indonesia must be filed through his/her proxy in Indonesia, which is defined as a consultant of intellectual property rights registered at the Directorate General.

Consultancy services related to the installation of computer hardware and software implementation services are required to form a joint operation through a representative office in Indonesia.

Foreign investors are not allowed to own base stations/cellular towers. Given this regulation, foreign companies could be forced to exit the market as in the case of Singapore Singtel.

Foreign investors are required to register with the Indonesia Investment Coordinating Board (BKPM) and obtain a license.