The Ministry of Industry Regulation No. 49/2009 requires the use of domestic products and services in 558 sub-sectors for public procurement. The mandate to use domestic products in these sub-sectors applies if there are goods and services with minimum local content requirements ranging from 15% up to 96%. Domestic products and services are defined as goods or services produced or prepared by a company investing and producing in Indonesia, with the possibility to use imported raw materials or components in the production or working process.

It is reported that there is an obligation for passive infrastructure sharing in Indonesia to deliver telecom services to end users.

The Ministry of Communications and Informatics Regulation No. 12/2019, which replaces Regulation No. 41/PER/M.KOMINFO/10/2009 by the Ministry of Communication and Information Technology mandates that Indonesian telecommunication operators allocate at least 50% of their total capital expenditures for network development to locally sourced components or services. The regulation also stipulated that any telecommunication device/material which contains a minimum of 50% local component will be considered to have 100% local component (Art. 6). The regulation also requires companies to report the percentage of local content procured annually and have that information “authenticated” by the government or a survey institute appointed by the government. These requirements have been in place since 2009.

According to Presidential Regulation No. 10/2021, the telecommunications sector was liberalised, allowing full foreign ownership of telecommunication service providers and telecommunication towers. However, according to Art. 1.2 and 77 of the State-owned Enterprises Act 19/2003, there is a limit of 49% on the shares that can be acquired by foreign investors in government-controlled firms. This includes foreign participation in state-owned entreprisese (SOEs) in the telecommunication sector, as regulated in Government Regulation No. 15/2013, amended by Government Regulation No. 41/2021.

Art. 6 of the Ministry of Industry Regulation 15/M-IND/PER/3/2016 stipulates that transmission towers and steel-reinforced conductors used in public procurement require a minimum local content of 40%.

It is reported that the Indonesian Government holds a 52% stake in Telkom Indonesia, the largest telecommunications company in Indonesia. It provides an extensive range of services, including fixed-line and mobile telecommunications, broadband internet, digital television, and IT solutions. As a state-owned enterprise with a majority government stake, Telkom Indonesia operates under the regulatory framework set by the Ministry of Communication and Information Technology (Kominfo).

Indonesia is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2012.

According to Presidential Regulation No. 10/2021, the telecommunications sector was liberalised, allowing full foreign ownership of telecommunication service providers and telecommunication towers. However, according to Art. 1.2 and 77 of the State-owned Enterprises Act 19/2003, there is a limit of 49% on the shares that can be acquired by foreign investors in government-controlled firms. This includes foreign participation in state-owned entreprisese (SOEs) in the telecommunication and delivery services sectors, as regulated in Government Regulation No. 15/2013, amended by Government Regulation No. 41/2021.

The Ministry of Communication and Information Technology Regulation No. 6/2017 mandates that any consortium offering Internet Protocol Television (IPTV) must consist of at least two Indonesian entities (Art. 4). Additionally, Art. 6 specifies that foreign investors must adhere to the requirements of Art. 4. Every consortium providing IPTV must obtain approval from the Ministry of Communications and Informatics. The approval request must include details on all company shares held by foreign investors (Art. 25.7 h).

The Ministry of Manpower and Transmigration Regulation No. 40/2012 specified 19 positions that are reserved for Indonesian nationality only, ranging from Chief Executive Officer to various directors, managers, and supervisors positions within a company.

Pursuant to Art. 24 of the Trade Act and Art. 5 of the Limited Liability Company Act, all exporters and importers are subject to a licence issued by the government, which is subject to a commercial presence requirement.

The Ministry of Communications and Informatics issued Circular Letter No. 3/2016 on 31 March 2016, establishing the regulatory framework for the delivery of application and content services via the Internet, commonly referred to as Over the Top (OTT) Services. The Circular categorises OTT Services into two main types. The first, OTT Application Services, involves the use of internet protocol-based telecommunications networks to provide functions such as text messaging, voice and video calls, online chatting, financial transactions, data storage, gaming, social networking, and related services. The second, OTT Content Services, encompasses the provision of digital information in formats such as text, sound, images, animations, videos, music, films, and games, delivered via streaming or downloads over telecommunications networks.
According to Section 5.3 of the Circular, foreign individuals or business entities may provide OTT Services only if they establish a Permanent Business Entity in Indonesia, in compliance with the country’s prevailing tax regulations. Furthermore, the Circular imposes specific obligations on OTT Service Providers, including the mandatory use of Indonesia’s National Payment Gateway and Indonesian internet protocol numbers (Sections 5.5.5 and 5.5.6).

Indonesia is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.

Indonesia has a copyright regime under the Law of the Republic of Indonesia No. 28 of 2014 on Copyright. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 43 lists the exceptions, which include publication, distribution, communication, and/or reproduction of State emblems and national anthems in accordance with their original nature; the production and distribution of the Copyrighted content through information technology and communication media that are not commercial and/or lucrative for the Author or related parties, or the Author expresses no objection to the manufacture and dissemination in question; among others.

Copyright is not adequately enforced online in Indonesia. It is reported that online piracy through piracy devices and applications is a concern, and unauthorised camcording and unlicensed use of software remain problematic.