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INDONESIA

Since December 2000

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Law of the Republic of Indonesia No. 30 of 2000 on Trade Secrets (Undang-Undang Republik Indonesia Nomor 30 Tahun 2000 Tentang Rahasia Dagang)
Law of the Republic of Indonesia No. 30 of 2000 on Trade Secrets provides a framework for effective protection of trade secrets. According to Art. 1 of the law, trade Secrets are legally defined as information in the field of technology and/or business that is not known by the public and has economic value as it is useful in business activities, and the confidentiality of which is maintained by its owner. Any person who deliberately and without rights uses the Trade Secret of another party or conducts any acts as referred to in Arts. 13 and 14 shall be sentenced to imprisonment of at most two years and a fine.
However, it is reported that it is necessary to prove that the suspected party has unlawfully obtained the trade secret. Proving this may be difficult as the litigation procedure is not equipped with a discovery procedure to uncover relevant evidence of the suspected party. It may help if the trade secret holder can prove that the local company had some form of relationship previously with it or was previously given access to the trade secret.
Coverage Horizontal

INDONESIA

Since May 2009

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 49/2009
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.
Coverage 558 sub-sectors

INDONESIA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in Indonesia to deliver telecom services to end users.
Coverage Telecommunications sector

INDONESIA

Since October 2019

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Ministry of Communication and Information Technology Regulation (MOCI) No. 12/2019
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.
Coverage Network telecommunication operators

INDONESIA

Since June 2003, last amended in 2022
Since February 2021, last amended in May 2021
Since March 2013, last amended in February 2021

Pillar Telecom infrastructure & competition  |  Indicator Maximum foreign equity share for investment in the telecommunication sector
Law of the Republic of Indonesia No. 19 of 2003 Concerning State-owned Enterprises (Undang-Undang Republik Indonesia Nomor 19 Tahun 2003 Tentang Badan Usaha Milik Negara)

Presidential Regulation No. 10 of 2021 on Business Fields Open to Investment (Peraturan Presiden Republik Indonesia Nomor 10 Tahun 2021 Tentang Bidang Usaha Penanaman Modal)

Regulation of The Government of the Republic of Indonesia No. 15 of 2013 on Implementation of Law No. 38 of 2009 on Post (Peraturan Pemerintah Republik Indonesia Nomor 15 Tahun 2013 Tentang Pelaksanaan Undang-Undang Nomor 38 Tahun 2009 Tentang Pos)
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.
Coverage State-owned entreprises in the telecom sector
Sources

INDONESIA

Since March 2016

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 15/M-IND/PER/3/2016
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%.
Coverage Transmission towers and steel-reinforced conductors

INDONESIA

Reported in 2018, last reported in 2023

Pillar Telecom infrastructure & competition  |  Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
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).
Coverage Telecommunication sector

INDONESIA

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
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.
Coverage Horizontal

INDONESIA

Since June 2003, last amended in 2022
Since February 2021, last amended in May 2021
Since March 2013, last amended in February 2021

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Law of the Republic of Indonesia No. 19 of 2003 Concerning State-owned Enterprises (Undang-Undang Republik Indonesia Nomor 19 Tahun 2003 Tentang Badan Usaha Milik Negara)

Presidential Regulation No. 10 of 2021 on Business Fields Open to Investment (Peraturan Presiden Republik Indonesia Nomor 10 Tahun 2021 Tentang Bidang Usaha Penanaman Modal)

Regulation of The Government of the Republic of Indonesia No. 15 of 2013 on Implementation of Law No. 38 of 2009 on Post (Peraturan Pemerintah Republik Indonesia Nomor 15 Tahun 2013 Tentang Pelaksanaan Undang-Undang Nomor 38 Tahun 2009 Tentang Pos)
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.
Coverage State-owned entreprises in the telecom and delivery services serctor
Sources

INDONESIA

Since February 2017

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Requirement to engage in joint ventures to invest or operate
Ministry of Communication and Information Technology Regulation No. 6/2017
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).
Coverage Internet Protocol Television (IPTV)

INDONESIA

Since January 2014

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Ministry of Industry Regulation No. 02/M-IND/PER/1/2014 (Peraturan Menteri Perindustrian 02/M-IND/PER/1/2014)
Art. 10 of Regulation No. 02/M-IND/PER/1/2014 provides that domestic service suppliers need to be prioritised. To qualify as a domestic service provider, a majority of the shares must be owned by an Indonesian citizen, and two-thirds of the board members must be local. If no domestic service suppliers are participating in the procurement, national service suppliers (with at least 10% of shares belonging to Indonesians) will be taken into consideration. Only when these are also unavailable will foreign service providers be allowed to participate in the procurement process as well (Art. 16.1).
Coverage Horizontal

INDONESIA

Since March 2018, last amended in February 2021

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Under Art. 63 of Presidential Regulation No. 16/2018, an International Tender may be conducted if no capable or eligible domestic Economic Operator is available, and:
- The estimated value of goods and other services exceeds Rp 50 billion (approx. USD 4.5 million), or
- The estimated value of consulting services exceeds Rp 25 billion (approx. USD 2.25 million).
Additionally, foreign business entities selected through an International Tender must collaborate with national business entities via a consortium, subcontract, or other forms of cooperation.
Coverage Horizontal

INDONESIA

Since March 2018, last amended in February 2021

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Art. 66 of Presidential Regulation No. 16/2018 provides that the ministries, institutions and regional apparatuses are obligated to use domestic products. Procurement of imported goods may be conducted in the event that the goods cannot be produced domestically or that domestic production volume is unable to meet the demand.
Coverage Horizontal

INDONESIA

Since October 2019

Pillar Public procurement of ICT goods and online services  |  Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
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)
Art. 9 of the Government Regulation No. 71/2019 requires that providers of bespoke software must provide or escrow the source codes associated with their service. The requirement applies to Electronic System Providers for public scope. This requirement was already contained in Art. 8 of Government Regulation No. 82/2012, which was repealed by Government Regulation No. 71/2019.
Coverage Electronic systems operators for public scope

INDONESIA

Since March 2022

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
President Instruction No. 22/2022
In March 2022, the government of Indonesia issued President Instruction No. 22/2022, mandating all government agencies to spend at least 40% of their budget on local products produced by SMEs. According to the regulation, the objective is to increase the use of local products to support the "Proud of Using Products Made in Indonesia" campaign. The regulation entered into force on 30 March 2022.
Coverage Horizontal

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