JAKARTA (IndoTelko) - Foreign Over The Top (OTT) companies are advised not to be too concerned with the release of Circular Letter (SE) No. 3 of 2016 on the Application or Content Service Provision via the Internet from the Minister of Communication and Information Technology Rudiantara.
"I already said that we are friendly to investment and innovation. If the application is useful for society, we cannot play hard. The letter was issued to give them (foreign OTT) time to adjust to the regulations that we are preparing," said Rudiantara, to IndoTelko.
Currently the government is waiting on the development from Europe regarding OTT discussion regulations.
"I have mentioned about it last year, we want the benchmarks to Europe, it turns out they have not finished yet. We try to take the middle ground with this letter. When viewed the letter is not very strict as there is no service license obligations for OTT," the minister said. (See also: The regulation design for OTT)
Minister Rudiantara suggested that foreign OTT to establish cooperation with local operators so that the obligations can be transferred to the operators.
"Yesterday I have demonstrated Spotify with Indosat. That I become Indosat took over about customer service, payment and more. It is better to cooperate with all operators, it is impossible that Indosat subscribers complains to Telkomsel about Spotify," he said.
There would be no problems if later the foreign OTT decides to collaborate with local partners, as long as all obligations have been met.
"The tax can be paid by the operator, it will be similar to what BlackBerry did with the carriers, operators have already paid for it. Well, now the choice is whether to manage it complicatedly with all operators or established a business entities (BUT)," Rudiantara said.
Crucial issues
Separately, Commissioner of the Indonesian Telecommunications Regulatory Body (BRTI) Member Muhammad Imam Nasir said that it is not easily to regulate the OTT because there are no official rules that can be used as a benchmark from other countries.
"We have submitted the draft to be applied as the Ministerial Regulation (PERMEN)to Minister Rudiantara, there are several articles that are controversial and need public consultation to create the best solution. The current Circular Letter is the best middle ground guidance for the players to hold on to," Nasir said.
Nasir added that the circular letter still has legal power even though it’s level is still below the Ministerial Regulation. "This is only temporary. We should also be aware of foreign OTT's style resistance which usually taking advantage of the user's ignorance. Let us not be played off by foreign players at the bottom level," Nasir said.
eCommerce players responded positively to the circular letter issuance. "We are pleased that the letter is issued, we really need clear regulations for it. We are being chased for taxes at the eCommerce sector, while the foreign OTT left free," said CEO Blanja.com Aulia E. Marinto yesterday.
Expected, the government can quickly engage the circular letter to be ministerial regulation to provide legal certainty for all parties.
"Please don’t chase eCommerce anymore for taxes, go chase Permanent Establishment (BUT). We have done all offline applicable taxes. Why do we have to be imposed with additional taxes just because we are online business?" Aulia said.(es)