JAKARTA (IndoTelko) – The rapid increase of foreign content offering Electronic System Operator (PSE) business in Indonesia creates the urgency for comprehensive regulation involving multiple stakeholders to prevent.
"The dynamic growth of technology is very fast has becoming a major challenge for content management. This is why we need more comprehensive rules about Over the Top (OTT). I have given a warning notice yesterday to Google there will be a rule about this. Soon or later, it will come," said the Minister of Communication and Informatics Technology Rudiantara to IndoTelko in conversation via telephone yesterday.
He said that the warning notice on the issuance of stricter rules and provide equal levels of playing field between foreign and local players in the content has been delivered when receiving the visit of Google Vice President and Deputy General Counsel Matt Sucherman on January 26, 2016.
"I heard some complaints from friends about taxes and other liabilities to foreign players. But, I ask for their understanding, as this is not a sole work of the Ministry. For example the digital tax that involves the Ministry of Finance, for initial understanding foreign company's business model so we ask the Electronic System Operator to be a permanent business establishment," he said.
Rudiantara said that the permanent business establishment is the gate to meet the elements of legality, rights/obligations of legal, fiscal regulation, consumer protection and other certainty.
"I know that there is a Foreign OTT who offers Ad Sense but do not pay tax in Indonesia. We understand how the game is played boss. Well, we want to catch it like fishing in the pond. Do not holding it too tight otherwise it will run. If it turns out they (foreign OTT) bring benefits, it should be considered," the minister said.
Meanwhile the organizers of the Director General of Post and Information (PPI) Kalamullah Ramli added, so far they have prepared two regulation options for OTT players.
"First, we revised regulation about Multimedia content or make new rules that are more comprehensive," Ramli said.
Supports
Chairman of the Indonesia Mobile and Content Providers Association (IMOCA) Evi Puspa supports the government measures to bring equal level playing field for the content business.
"We support, otherwise the competition is one sided. Local players must obey many conditions for cooperation with the operator. Not to mention the tax issue," she explained.
Chairman of MASTEL Institute Nonot Harsono added that if there is a foreign OTT doing business in Indonesia by offering products directly to people, it is normal that they are billed for their obligation to the state.
"Foreign players are mostly from the civilized countries in the universe. Everyone also knows that there are three components of the state, namely the territory, people, and government. You cannot do business directly to the region and the people, but ignored the local government. That is a disgraceful international behavior and insulting the Indonesian nation. The government must be firm," he said.
Previously, according to The Center for Welfare Studies of the tax on digital business and the potentials that cannot be scooped from foreign OTT players is around Rp10 trillion to Rp15 trillion in Indonesia.
Foreign OTT in Indonesia become the spotlight after the action of Telkom Group who dared to block Netflix since January 27, 2016 after stated do not meet the applicable regulations in the country. (es)