JAKARTA (IndoTelko) - The Indonesian Ministry of Communications and Information Technology (Kemenkominfo) finally issued a Ministerial Regulation draft on Application and/or content Service Provision Through the Internet.
A regulation that will set the Over The Top (OTT) players, which started from the circular notes No. 3 of 2016 on Application and/or content Service Provision through the Internet (OTT) by the Minister of Communications and Information Technology Rudiantara recently.
Before put into effect, the Ministerial Regulation draft would be public tested starting April 29 to May 12, 2016. The design of this policy can be downloaded from the official website of the Ministry of Communication. There are several interesting things will be regulated and predicted to face challenges in its implementation. (See also: Dismantling OTT Business)
This policy requires the OTT to operate in the form of a permanent establishment (BUT) either foreign or local players. OTT players must register their business forms and activities to the Indonesian Telecommunications Regulatory Body (ITRB) no later than 30 working days prior to providing services in Indonesia by attaching the required documents.
If the OTT is in the form of Foreign Direct Investment (FDI) then they shall attach the Permanent Business License from the Investment Coordinating Board (BKPM); Service types provided and contact center information in Indonesia.
The ITRB (BRTI) is an institution that conducts surveillance and control over the implementation of this regulation. In the framework of supervision and control, instruments used by the ITRB among others are circulars letters, information/ data request letter and reprimand.
In the event of a dispute related on charging, regulatory compliance, services, would be evaluated thoroughly by the ITRB and may suspend the related services.
OTT Service Providers must submit a report to the ITRB regularly every year. The report covers the least number of customers in Indonesia; and / or traffic statistics service that is accessed by users in Indonesia.
Obligation
The regulation also regulate the OTT service provider to comply with the provisions of the legislation in the field of: prohibition of monopolistic practices and unfair business competition; trading; consumer protection; intellectual property rights; broadcasting; film; advertising; pornography; anti-terrorism; taxation; transportation and logistics; tourism and hospitality; finance; health; and / or regulations and other relevant legislation.
OTT players also need to perform data protection and data privacy in accordance with the provisions of the legislation.
Content filtering and sensor mechanism should be done in accordance with the provisions of the legislation. The OTT must use the payment gateway system that is incorporated in Indonesia, especially for paid OTT.
Using Indonesian internet protocol number and place several servers in the data center within the territory of the Republic of Indonesia. Ensure access to information lawful interception and evidence taking for purposes of a criminal investigation or criminal case investigation by law enforcement officials in accordance with the provisions of the legislation; and placing the service information or instructions in accordance with the provisions of Indonesian law.
Cooperation
OTT cooperation with telecommunication operators also regulated in this regulation, which OTT service providers can collect charge (paid) or not to charge (unpaid) to the OTT Service users.
There are three options given for cooperation with the first option in the provision of OTT services, the OTT service providers can cooperate with the telecommunications operator.
The second option, in terms of the OTT service provided has the similar function or substitutive with telecommunications services, OTT Service Provider shall work closely with telecom service providers.
The third option, in terms of the OTT service provided has the same function or substitutive with telecommunications services, OTT Service Provider shall be the telecommunications services.
OTT and operator collaboration shall be set forth in a written agreement and reported to ITRB later than 30 calendar days since the agreement was signed.
Compensation
Interestingly, in the design of this policy also regulates the issue of compensation to consumers. Consumers entitled to apply for compensation to the OTT Service Providers for any errors or omissions done by the OTT service providers that harms the user.
Whereas the sanctions provided in the form of bandwidth management based on the evaluation of ITRB with input from the community. Execution of sanctions against OTT service providers in the form of Bandwidth management would be done by operator.
According to plan, Minister Rudiantara will form an OTT Service Forum involving related ministries/institutions, agencies, or experts related to the charge of giving feedback to the Minister in determining policy related to the provision of OTT services in Indonesia teritory.
For OTT Service Providers which has been operating prior to the regulation applied can still operate with the obligation to adjust the regulation no later than 9 months since the Regulation came into force.(es)