Giant Companies Reluctant to Open Branch Offices in Indonesia

TEMPO.CO, Jakarta-Communications and Information Minister Rudiantara said that President Joko “Jokowi” Widodo had called on giant tech companies, such as Facebook, Twitter and Netflix, to open their branch offices in Indonesia when Jokowi visited the Silicon Valley, United States. However, Rudiantara said that the companies were unlikely to respond the call.

“Because it’s more practical and cost-efficient not to open branch offices in Indonesia,” Rudiantara said when reporting Jokowi’s working visit results on Wednesday, February 24, 2016.

Earlier, On-demand Internet streaming and DVD service Netflix was almost banned in Indonesia, since it did not have a branch office in Indonesia and held no cooperation with Indonesian operators.

Rudiantara said that the government would make its best effort to attract over the top companies to open their branch offices in Indonesia. One of them was removing digital business from the Indonesian Negative Investment List (DNI). In addition, the government would provide 100 percent control for a business worth more than Rp100 billion (US$7.4 million).

“So, we will provide flexibilities for them to open branch offices here [in Indonesia],” he explained.

The minister asserted that regulation would require foreign companies to open branch offices in Indonesia. Currently, the government is still approaching the companies to realize the goal.

ISTMAN MP