AmCham Engages in OTT Draft Discussion

Tuesday, May 31, 2016

As the Ministry of Communications and Information (KOMINFO) moves forward on regulations for the so-called over-the-top app industry in Indonesia, AmCham has been raising the concerns of related businesses during the drafting process.

On May 24, KOMINFO, under the Indonesian Telecommunication Regulatory Authority (BRTI), held a public hearing on the Ministerial Draft Regulation on Provision of Application Services and/or Content Over the Internet.

In preparation for this, on May 18, several AmCham members met with Acting Director General of Post and Informatics Operations Geryantika Kurnia and the BRTI’s commissioners to exchange views on the draft. The meeting was requested by the industry.

AmCham has also been involved in the submission of written comments on the draft regulation in cooperation with the US Chamber of Commerce, the US-ASEAN Business Council and the Business Software Alliance.

Member companies who attended the discussion mostly asked for elaboration and background on the definition and coverage aspects of the regulation, as well as seeking clarification on data center requirements and partnerships. Representatives of USABC also attended.

AmCham was also invited to the larger socialization on May 24, which was attended by numerous OTT stakeholders ranging from government officials to industry associations, such as the Association of Internet Service Providers (APJIII), the Association of Cellular Telecommunications Indonesia (ATSI), the Indonesian E-Commerce association (IDEA) and the Indonesian Telematics Society (MASTEL).

The telco sector was represented by Telkomsel, XL Axiata and Hutchinson 3 Indonesia.

During the public hearing, BRTI revealed that the OTT draft is expected to be an “umbrella” for Internet business in the country, so that a variety of Internet services can have a legal basis and be regulated by Indonesian law. BRTI also shared that the OTT legal mandate is based on the principle of “same services, same role,” meaning that if one entity provides the same services as others, they should abide by the laws and regulations regulating the business. This is to guarantee fair treatment between OTT and telecommunication providers offering similar services.

“This draft also aims to give legal certainty and fair treatment for existing players, provide healthy competition, and protect consumers, while at the same time ensuring wider Internet coverage for the people,” said Muhammad Imam Nashiruddin, BRTI commissioner

BRTI also revealed the possibility of adjustments to the article concerning the national payment gateway (NPG) and data center requirements in the draft, as Indonesia had no NPG available at that time, and the delayed implementation of controversial Government Regulation No. 82 of 2012 on Data Centers.

The audience gave input on various aspects of the regulation, mainly concerning clarity and scope, as they argued that the draft should have a clearer context and scope by focusing on the ultimate goal of the regulation itself.

“There should be a separation in the context as well as in the definition of OTT commercial and OTT non-commercial,” said a representative of the Indonesian Association of Internet Providers. “The draft should also ensure that it will not hinder the creativity of the people.”

A representative of MASTEL said that KOMINFO should not be in a rush to draft the regulation, as the draft affected almost all aspects of Internet services. AmCham agreed with MASTEL’s statement requesting that KOMINFO would only enact the regulation once the draft was already in implementable form.

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