INDONESIA
Since October 2019
Since November 2020
Since November 2020
Pillar Online sales and transactions |
Indicator Local presence requirements for digital services providers
Government Regulation No. 71/2019 on the Provision of Electronic System and Transaction (Peraturan Pemerintah (PP) Nomor 71 Tahun 2019 Penyelenggaraan Sistem dan Transaksi Elektronik)
Indonesia Minister of Communication and Informatics Regulation No. 5/2020 (Peraturan Menteri Komunikasi dan Informatika Nomor 5 Tahun 2020 tentang Penyelenggara Sistem Elektronik Lingkup Privat)
Indonesia Minister of Communication and Informatics Regulation No. 5/2020 (Peraturan Menteri Komunikasi dan Informatika Nomor 5 Tahun 2020 tentang Penyelenggara Sistem Elektronik Lingkup Privat)
According to the Minister of Communication and Informatics Regulation No. 5 of 2020 on Private Electronic System Operators, foreign Private Electronic System Operators (ESOs) are required to register their businesses with the relevant ministry through the online single submission system. ESOs should also appoint liaison officers, who have to be domiciled in Indonesia. The duty of the liaison officer is to facilitate any access request by government authorities and takedown requests. According to the regulation, ESOs are persons, business entities, or communities that operate an electronic system. ESOs include electronic system operators that are supervised by ministers or institutions in accordance with laws and regulations and electronic system operators that have an online portal, site, or application through the Internet. The requirement was first enacted with Government Regulation No. 71/2019 regarding the Provision of Electronic Systems and Transaction which repealed the Government Regulation No. 82 of 2012.
Coverage Electronic system operators
Sources
- https://web.archive.org/web/20231123132413/https://jdih.kominfo.go.id/produk_hukum/view/id/759/t/peraturan+menteri+komunikasi+dan+informatika+nomor+5+tahun+2020
- https://web.archive.org/web/20210116034545/https://www.bakermckenzie.com/en/insight/publications/2019/10/new-regulation-electronic-system-and-transactions
- https://web.archive.org/web/20240116013736/https://peraturan.bpk.go.id/Details/122030/pp-no-71-tahun-2019
- https://web.archive.org/web/20230103224650/https://www.lexology.com/library/detail.aspx?g=cd6e5251-6dd7-4b46-b6be-759c78c9bf7b
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INDONESIA
Since April 2008
Pillar Online sales and transactions |
Indicator Framework for consumer protection applicable to online commerce
Law No. 11 Year 2008 concerning Information and Electronic Transactions
Law No. 11 Year 2008 concerning Information and Electronic Transactions provides a comprehensive framework for consumer protection that also applies to online transactions.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231129032301/http://www.flevin.com/id/lgso/translations/JICA%20Mirror/english/4846_UU_11_2008_e.html
- https://web.archive.org/web/20221126223904/https://sas-space.sas.ac.uk/5458/1/1891-2645-1-SM.pdf
- https://web.archive.org/web/20241211160401/https://unctad.org/page/cyberlaw-tracker-country-detail?country=id
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INDONESIA
N/A
Pillar Online sales and transactions |
Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Indonesia has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
INDONESIA
N/A
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Indonesia has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
INDONESIA
N/A
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Indonesia has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
INDONESIA
Since February 2021
Pillar Technical standards applied to ICT goods and online services |
Indicator Self-certification for product safety
Government Regulation (PP) No. 28 of 2021 on the Implementation of the Industrial Sector (Peraturan Pemerintah (PP) Nomor 52 Tahun 2000 tentang Penyelenggaraan Telekomunikasi)
The Government Regulation (GR) No. 28 of 2021 on the Implementation of the Industrial Sector includes requirements governing conformity assessment to Indonesian national standards (“SNI”) for a wide variety of consumer goods, including electronics. It has been reported that testing laboratories and conformity assessment bodies have been told to halt certification until the Minister of Industry issues implementing guidance for GR 28/2021. This standstill has resulted in the halting of imports that use the SNI scheme, which requires testing per shipment. Additionally, GR 28/2021 requires that all steps of product testing be conducted by an Indonesian national residing in Indonesia, further complicating product sample collection amid ongoing travel restrictions.
Coverage Electronics
INDONESIA
Since March 2013, last amended in February 2021
Pillar Online sales and transactions |
Indicator Maximum foreign equity share for investment in the e-commerce sector
Government Regulation No. 15/2013 (PP No. 15 Tahun 2013)
There is a limit of 49% on the shares that can be acquired by foreign investors in government-controlled firms. This includes foreign participation express delivery services SOEs sector as regulated in the Government Regulation No. 15/2013 as amended by the Government Regulation No. 46/2021.
Coverage Express delivery services in state-owned enterprises
Sources
- https://web.archive.org/web/20230324213810/https://peraturan.bpk.go.id/Home/Details/161970/pp-no-46-tahun-2021
- https://web.archive.org/web/20240919145124/https://peraturan.bpk.go.id/Details/5347
- https://web.archive.org/web/20211026020629/https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Indonesia.pdf
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INDONESIA
Since January 2013
Since November 2016
Since November 2016
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Ministry of Trade Regulation No. 38/2013
Ministry of Industry Regulation No. 68/M-IND/PER/9/2016
Ministry of Industry Regulation No. 68/M-IND/PER/9/2016
The Ministry of Trade Regulation 38/2013 imposes requirements on importers of mobile phones, handheld computers, and tablets to prove previous import activities and local aftersales activity, as well as requirements regarding the distribution and the establishment of industrial activity in Indonesia. In addition, the Ministry of Industry Regulation 68/M-IND/PER/9/2016 includes new licensing requirements for different types of importers of tablets, cellular phones, and handheld computers. These differ depending on:
- whether the importer is working with an Indonesian producer,
- whether the importer is also the producer of the goods,
- whether the imports are conducted with a specific purpose (i.e., specialised orders) or concerning after-sales services.
- whether the importer is working with an Indonesian producer,
- whether the importer is also the producer of the goods,
- whether the imports are conducted with a specific purpose (i.e., specialised orders) or concerning after-sales services.
Coverage Mobile phones, handheld computers and tablets
Sources
- https://web.archive.org/web/20220128120412/http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
- https://web.archive.org/web/20171021201717/http://jdih.kemenperin.go.id/site/baca_peraturan/2248
- https://web.archive.org/web/20240622113653/https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/G/LIC/M40.pdf&Open=True
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INDONESIA
Since 2021, last amended in 2022
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Ministry of Trade Regulation (MOT) No. 20/2021
Indonesia has implemented stringent measures that affect the importation of cellular and Wi-Fi-equipped products. In support of its Commodity Balance policy, the Ministry of Trade (MOT) issued Regulation 20/2021 (amended by MOT Regulation 25/2022), which consolidated import regulations under a unified framework, including the revocation of MOT Regulation 82/2012. These regulations mandate that all import license applications be processed through the national single window system, maintaining rigorous import requirements. Importers must now be registered and demonstrate engagement with at least three distributors, as well as contribute to the domestic device industry or collaborate with local manufacturing, design, or research entities. Importation of 4G and beyond technology devices requires a producer's license (API-P), typically held by importers of unfinished goods, further restricting foreign producers' access to the Indonesian market. Additionally, importers must provide product identification numbers and a corresponding certificate from the Ministry of Communications and Information Technology (MCIT), leading to prolonged decision-making processes and industry uncertainty. Despite reports about this regulation, the regulatory text could not be located online.
Coverage Wide range of products, including electronics
INDONESIA
Since August 2020
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Minister of Trade Regulation (MOT) No. 68/2020
Under MOT Regulation 68/2020, Indonesia requires import approvals and stringent reporting requirements for electronic devices (except such products imported for market testing or after-sales service purposes) with the stated goal of reducing the volume of consumer goods entering Indonesia in favour of local production.
Coverage Electronic devices
INDONESIA
Since February 2018
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Minister of Finance (MOF) Regulation No. 17/2018
Regulation 17/2018 establishes five HS lines at the eight-digit level (with import duty rates currently set at zero per cent) for software and other digital products transmitted electronically, including applications, software, video, and audio. Despite zero tariffs, it is reported that companies have expressed concern over the potential administrative burden of this new regulation, including potential customs documentation or reporting requirements. MOF has indicated that any data reporting under this system will be voluntary.
Coverage Software and other digital products transmitted electronically, including applications, software, video, and audio
INDONESIA
Since October 2019
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Local content requirements (LCRs) on ICT goods for the commercial market
Ministry of Communication and Information Technology Regulation (MOCI) No. 12/2019
According to Ministry of Communication and Information Technology (MOCI) Regulation No. 12/2019, Indonesian telecommunication operators are required to expend a minimum of 50% of their total capital expenditures for network development on locally sourced components or services. The regulation also requires companies to annually report the percentage of local content procured and have that information “authenticated” by the government or a survey institute appointed by the government.
Coverage Components or services for telecommunication network
Sources
- https://web.archive.org/web/20230911152316/https://ustr.gov/sites/default/files/04032013%202013%20SECTION%201377%20Review.pdf
- https://web.archive.org/web/20231129083225/http://www2.itif.org/2013-usitc-digital-trade-global-economies.pdf
- https://web.archive.org/web/20231001091618/https://jdih.kominfo.go.id/produk_hukum/view/id/399/t/peraturan+menteri+komunikasi+dan+informatika+nomor+41permkominfo102009+tanggal+16+oktober+2009
- https://web.archive.org/web/20230326114326/https://jdih.kominfo.go.id/produk_hukum/view/id/713/t/peraturan+menteri+komunikasi+dan+informatika+nomor+12+tahun+2019+tanggal+25+oktober+2019
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INDONESIA
Since October 2021
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Local content requirements (LCRs) on ICT goods for the commercial market
Ministry of Communication and Information Technology (MCIT) Regulation No. 13/2021
According to Art. 4 of the Ministry of Communication and Information Technology (MCIT) Regulation 13/2021, all 4G-LTE and 5G-enabled devices since April 2022 to contain 35% local content (while previously it was set at 30% in the Ministry of Communication and Information Technology (MOCI) Regulation No. 27/2015) and all 4G-LTE and 5G base stations to contain 40% local content. Ministry of Information's Regulation 29/2017 provides a formula for calculating “local content".
Coverage 4G smartphones
Sources
- https://web.archive.org/web/20241219160030/https://jdih.kominfo.go.id/produk_hukum/view/id/782/t/peraturan+menteri+komunikasi+dan+informatika+nomor+13+tahun+2021
- https://web.archive.org/web/20241219160405/https://www.eria.org/uploads/media/discussion-papers/FY21/Indonesias-Local-Content-Requirement-WTO-Rules.pdf
- https://web.archive.org/web/20240926213812/https://ustr.gov/sites/default/files/2023-03/2023%20NTE%20Report.pdf
- https://web.archive.org/web/20231206004147/https://www.state.gov/reports/2022-investment-climate-statements/indonesia/
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INDONESIA
Since February 2017
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Local content requirements (LCRs) on ICT goods for the commercial market
Ministry of Communication and Information Technology Regulation No. 6/2017
According to the Ministry of Communication and Information Technology Regulation No. 6/2017 , IPTV providers shall prioritise and are required to provide Internet Protocol Set-Top-Boxes with a minimum local content requirement of 20%, with the amount rising to 50% within five years of starting operations in Indonesia. Furthermore, the IPTV operator shall provide at least 10% of domestic content during its broadcasting services, 30% during its multimedia services, and "the number of domestic, independent content providers contributing to the implementation of IPTV services shall be at least 10% of the number of content providers in the content library of the organiser and gradually increase to 50% within five years.
Coverage Internet Protocol Set-Top-Boxes and multimedia services
INDONESIA
Reported in 2022, last reported in 2023
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Local content requirements (LCRs) on ICT goods for the commercial market
Ministry of Communications and Information Technology (MCIT) Regulation No. 7/2009
Ministry of Communications and Information Technology (MCIT) Regulation No. 19/2011
Ministry of Communications and Information Technology (MCIT) Regulation No. 19/2011
Ministry of Communications and Information Technology Regulations No. 7/2009 and No. 19/2011 require that equipment used in certain wireless broadband services contain local content of at least 30% for subscriber stations and 40% for base stations and that all wireless equipment contains 50% local content. Although there are reports about the regulations, it was not possible to find the regulatory text.
Coverage Wireless broadband services
Sources
- https://web.archive.org/web/20230919071254/https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
- https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
- https://web.archive.org/web/20231218104632/https://www.kominfo.go.id/
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