OTT Content Providers Must Establish Office, Ministry Says

TEMPO.CO, Jakarta - The Communication and Informatics Ministry (Ministry) plans to issue a regulation that mandates over the top (OTT) content provider companies to establish a permanent business entity in Indonesia starting on April 2016.

"The Ministry obliges OTT content provider companies to establish a business entity,” said Ismail Cawidu, Head of Information and Public Relation of the Ministry to Tempo on Friday, March 18, 2016.

The obligation will also apply to foreign OTT content provider companies in Indonesia, including Facebook, Twitter, and Whatsapp. Ismail said that these companies can still operate in Indonesia if they could establish a permanent representative office in the country. Ismail added that foreign OTT content provider companies must also cooperate to protect consumers’ confidential information.

Ismail said that if foreign OTT content provider companies cannot establish a permanent business entity, they are allowed to cooperate with similar companies in Indonesia.

Ismail stated that the Communication and Informatics Minister Rudiantara had promised that the regulation will be completed on April 2016. "[The regulation] will be announced in the beginning of April 2016, but we don't know whether it will be immediately enter into force or there will be a transition period," Ismail said.

Failing to comply with the regulation, Ismail said, OTT content provider companies will be subjected to sanctions. "[The app] could be blocked, or the company's bandwidth may be reduced so the company cannot operate its website freely," Ismail said.

ARIEF HIDAYAT | EGI ADYATAMA