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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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. 4/2019
It is reported that, according to Ministry of Communications and Information Technology (MCIT) Regulation 4/2019, all TV and set-top boxes based on digital video broadcasting-terrestrial second generation and internet protocol set-top boxes must contain at least 20% local content. Despite reports about these regulations, the regulatory text could not be located online.
Coverage TV and set-top boxes based on digital video broadcasting-terrestrial second
generation and internet protocol set-top boxes
generation and internet protocol set-top boxes
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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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. 9/2019
Ministry of Communications and Information Technology (MCIT) Regulation No. 10/2019
Ministry of Communications and Information Technology (MCIT) Regulation No. 10/2019
It is reported that Ministry of Communications and Information Technology (MCIT) Regulations 9/2019 and 10/2019 mandate that wavelength division multiplexing and internet protocol network devices adhere to local content requirements. Industry stakeholders have expressed ongoing concerns regarding the Ministry of Information's (MOI) reluctance to engage in dialogue on local content requirement (LCR) policies with stakeholders. Despite reports about these regulations, the regulatory text could not be located online.
Coverage Wavelength division multiplexing and internet protocol network
devices
devices
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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INDONESIA
Since 2000, last amended in 2021
Since 2020
Since 2020
Since 2020
Since 2020
Pillar Technical standards applied to ICT goods and online services |
Indicator Self-certification for product safety
Lack of self-declaration of comformity (SDoC)
Government Regulation No. 46/2021, which replaces Government Regulation No.52/2000, stipulates that a certificate of approval is required for IT and telecommunication equipment to be sold or imported into the Indonesian market. The certificate of approval is issued by the Directorate General of Resources and Equipment for Post and Information Technology (SDPPI). The SDPPI Kepdiejen Postel No. 3/2020 allows third-party certification from Conformity Assessment Bodies (CABs) from a number of countries.
In-country testing at an SDPPI laboratory of two randomly selected equipment samples is required for radio frequency and telecommunications equipment before the SDPPI issuance of the certificate SDPPI Decision No. 36 issued in January 2020 includes a list of the 150 international test labs that it recognises.
In-country testing at an SDPPI laboratory of two randomly selected equipment samples is required for radio frequency and telecommunications equipment before the SDPPI issuance of the certificate SDPPI Decision No. 36 issued in January 2020 includes a list of the 150 international test labs that it recognises.
Coverage IT and telecommunication equipment
Sources
- https://web.archive.org/web/20211124020525/https://peraturan.bpk.go.id/Home/Details/161970/pp-no-46-tahun-2021
- https://web.archive.org/web/20241127143858/https://www.eleoscompliance.com/en/article/indonesia-SDPPI-approval-testing-reports
- https://web.archive.org/web/20210622080801/https://www.trade.gov/knowledge-product/indonesia-standards-trade
- https://web.archive.org/web/20220122073757/https://peraturan.bpk.go.id/Home/Details/53323/pp-no-52-tahun-2000
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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 October 2011
Pillar Domestic data policies |
Indicator Requirement to allow the government to access personal data collected
Law No. 17/2017 on State Intelligence 2011 (Undang-undang Republik Indonesia Nomor 17 Tahun 2011 Tentang Intelijen Negara)
The Law on State Intelligence passed in October 2011 mandates that the collection of information on a person that is considered harmful to national interest and security should be based on the Head of State Intelligence Agency's order. The Law broadly authorises the Indonesian State Intelligence Agency (BIN) to engage in efforts “to prevent and/or to fight any effort, work, intelligence activity, and/or opponents that may be harmful to national interests and national security” (Art. 6). This may include communications surveillance. BIN's intelligence activities, including to collect information, should meet the following requirements: 1) they are for the purpose of intelligence function; 2) they are based on the Head of BIN's order; 3) they should be conducted without making any arrest and/or detention; and 4) they should be conducted in cooperation with a law enforcement agency. Civil society advocates in Indonesia had denounced the draft bill, which was nevertheless passed.
Coverage Horizontal
INDONESIA
Since December 2016
Since November 2019
Since November 2019
Pillar Intermediary liability |
Indicator Safe harbour for intermediaries for copyright infringement
Circular of the Minister of Communication and Information Technology No. 5/2016
Government Regulation of the Republic of Indonesia No. 80 of 2019 on Trading Through Electronic Systems (Peraturan Pemerintah Republik Indonesia Nomor 80 Tahun 2019 Tentang Perdagangan Melalui Sistem Elektronik)
Government Regulation of the Republic of Indonesia No. 80 of 2019 on Trading Through Electronic Systems (Peraturan Pemerintah Republik Indonesia Nomor 80 Tahun 2019 Tentang Perdagangan Melalui Sistem Elektronik)
Circular of the Minister of Communication and Information Technology No. 5/2016 provides the exemption to e-commerce providers from liability for failures to comply with the relevant laws in the event of force majeure, errors, or negligence. E-commerce providers will only be responsible for prohibited content posted on their platform if they are unable to prove that the uploading of such content was caused by the users.
In addition, Government Regulation No. 80/2019 provides broad immunity to e-commerce service providers and intermediary service providers from the legal consequences arising from illegal third-party content. For e-commerce service providers, the regulation discharges them from any liability for illegal content found on their platforms, provided they have acted expeditiously to remove or restrict access to such content after knowing of its existence (either by way of a report from a third party or finding it out themselves). To ensure that an e-commerce service provider is alerted of illegal content on its platform, the regulation requires such provider to provide terms of use/terms and conditions of the platform to its users and employ certain technology and/or features in the platform for users to submit a report.
The regulation discharges intermediary service providers from any liability for illegal content, provided that such providers act as a mere conduit. If an intermediary service provider provides an 'interactive computer service', such as a social media platform, they will be discharged from any liability for restricting or removing access to content if such action was carried out in good faith and based on a report that such content is illegal.
In addition, Government Regulation No. 80/2019 provides broad immunity to e-commerce service providers and intermediary service providers from the legal consequences arising from illegal third-party content. For e-commerce service providers, the regulation discharges them from any liability for illegal content found on their platforms, provided they have acted expeditiously to remove or restrict access to such content after knowing of its existence (either by way of a report from a third party or finding it out themselves). To ensure that an e-commerce service provider is alerted of illegal content on its platform, the regulation requires such provider to provide terms of use/terms and conditions of the platform to its users and employ certain technology and/or features in the platform for users to submit a report.
The regulation discharges intermediary service providers from any liability for illegal content, provided that such providers act as a mere conduit. If an intermediary service provider provides an 'interactive computer service', such as a social media platform, they will be discharged from any liability for restricting or removing access to content if such action was carried out in good faith and based on a report that such content is illegal.
Coverage Internet Intermediaries
Sources
- https://web.archive.org/web/20200930192349/https://jdih.kominfo.go.id/produk_hukum/view/id/558/t/surat+edaran+menteri++komunikasi+dan+informatika+nomor+5+tahun+2016+tanggal+30+desember+2016
- https://web.archive.org/web/20210206231755/https://www.mondaq.com/export-controls-trade-investment-sanctions/877568/welcoming-indonesia39s-e-commerce-regulation-a-snapshot#satu
- https://web.archive.org/web/20240208165640/https://peraturan.bpk.go.id/Details/126143/pp-no-80-tahun-2019
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INDONESIA
Since December 2016
Since November 2019
Since November 2020, last amended in November 2021
Since November 2019
Since November 2020, last amended in November 2021
Pillar Intermediary liability |
Indicator Safe harbour for intermediaries for any activity other than copyright infringement
Circular of the Minister of Communication and Information Technology No. 5/2016
Government Regulation of the Republic of Indonesia No. 80 of 2019 on Trading Through Electronic Systems (Peraturan Pemerintah Republik Indonesia Nomor 80 Tahun 2019 Tentang Perdagangan Melalui Sistem Elektronik)
Regulation of the Minister of Communications and Informatics of the Republic of Indonesia No. 5 of 2020 on Private Electronic System Operators (“Regulation 5”) (Peraturan Menteri Komunikasi Dan Informatika Republik Indonesia Nomor 5 Tahun 2020 Tentang Penyelenggara Sistem Elektronik Lingkup Privat)
Government Regulation of the Republic of Indonesia No. 80 of 2019 on Trading Through Electronic Systems (Peraturan Pemerintah Republik Indonesia Nomor 80 Tahun 2019 Tentang Perdagangan Melalui Sistem Elektronik)
Regulation of the Minister of Communications and Informatics of the Republic of Indonesia No. 5 of 2020 on Private Electronic System Operators (“Regulation 5”) (Peraturan Menteri Komunikasi Dan Informatika Republik Indonesia Nomor 5 Tahun 2020 Tentang Penyelenggara Sistem Elektronik Lingkup Privat)
Circular of the Minister of Communication and Information Technology No. 5/ 2016 provides the exemption to e-commerce providers from liability for failures to comply with the relevant laws in the event of force majeure, errors, or negligence. E-commerce providers will only be responsible for prohibited content posted on their platform if they are unable to prove that the uploading of such content was caused by the users.
In addition, Government Regulation No. 80/2019 provides broad immunity to e-commerce service providers and intermediary service providers from the legal consequences arising from illegal third-party content. For e-commerce service providers, the regulation discharges them from any liability for illegal content found on their platforms, provided they have acted expeditiously to remove or restrict access to such content after knowing of its existence (either by way of a report from a third party or finding it out themselves). To ensure that an e-commerce service provider is alerted of illegal content on its platform, the regulation requires such provider to provide terms of use/terms and conditions of the platform to its users and employ certain technology and/or features in the platform for users to submit a report.
The regulation discharges intermediary service providers from any liability for illegal content, provided that such providers act as a mere conduit. If an intermediary service provider provides an 'interactive computer service', such as a social media platform, they will be discharged from any liability for restricting or removing access to content if such action was carried out in good faith and based on a report that such content is illegal.
Furthermore, MOCI Regulation 5 of 2020 provides that private ESOs hosting user-generated content may be exempted from legal liability for prohibited content transmitted or distributed on their electronic systems as long as they have fulfilled their governance obligations, shared information on subscribers who uploaded the prohibited content for monitoring and law enforcement purposes, and take down the prohibited content as regulated under MOCI Regulation 5. According to the law, private ESOs must ensure that their electronic systems do not (i) contain prohibited electronic information or documents and (ii) facilitate the dissemination of prohibited electronic information or documents. They also must take down prohibited content within 24 hours or four hours (the latter is for urgent prohibited content, such as child pornography content, terrorism content, and content that causes public unrest, which is very broad) after receiving the takedown notice. MOCI Regulation 5 classifies prohibited content into content that is in violation of laws and regulations, causes anxiety for society, and disturbs public order based on the government’s assessment, posts, or provides access to prohibited content.
In addition, Government Regulation No. 80/2019 provides broad immunity to e-commerce service providers and intermediary service providers from the legal consequences arising from illegal third-party content. For e-commerce service providers, the regulation discharges them from any liability for illegal content found on their platforms, provided they have acted expeditiously to remove or restrict access to such content after knowing of its existence (either by way of a report from a third party or finding it out themselves). To ensure that an e-commerce service provider is alerted of illegal content on its platform, the regulation requires such provider to provide terms of use/terms and conditions of the platform to its users and employ certain technology and/or features in the platform for users to submit a report.
The regulation discharges intermediary service providers from any liability for illegal content, provided that such providers act as a mere conduit. If an intermediary service provider provides an 'interactive computer service', such as a social media platform, they will be discharged from any liability for restricting or removing access to content if such action was carried out in good faith and based on a report that such content is illegal.
Furthermore, MOCI Regulation 5 of 2020 provides that private ESOs hosting user-generated content may be exempted from legal liability for prohibited content transmitted or distributed on their electronic systems as long as they have fulfilled their governance obligations, shared information on subscribers who uploaded the prohibited content for monitoring and law enforcement purposes, and take down the prohibited content as regulated under MOCI Regulation 5. According to the law, private ESOs must ensure that their electronic systems do not (i) contain prohibited electronic information or documents and (ii) facilitate the dissemination of prohibited electronic information or documents. They also must take down prohibited content within 24 hours or four hours (the latter is for urgent prohibited content, such as child pornography content, terrorism content, and content that causes public unrest, which is very broad) after receiving the takedown notice. MOCI Regulation 5 classifies prohibited content into content that is in violation of laws and regulations, causes anxiety for society, and disturbs public order based on the government’s assessment, posts, or provides access to prohibited content.
Coverage Internet Intermediaries
Sources
- https://web.archive.org/web/20200930192349/https://jdih.kominfo.go.id/produk_hukum/view/id/558/t/surat+edaran+menteri++komunikasi+dan+informatika+nomor+5+tahun+2016+tanggal+30+desember+2016
- https://web.archive.org/web/20210206231755/https://www.mondaq.com/export-controls-trade-investment-sanctions/877568/welcoming-indonesia39s-e-commerce-regulation-a-snapshot#satu%20
- https://web.archive.org/web/20240208165640/https://peraturan.bpk.go.id/Details/126143/pp-no-80-tahun-2019
- https://web.archive.org/web/20231129182749/https://www.globalcompliancenews.com/2021/01/11/indonesia-indonesia-regulates-foreign-private-electronic-system-operators-04012021/
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