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INDONESIA

Reported in 2020, last reported in 2024

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
The Government of Indonesia holds a majority equity stake in the telecommunications company Telkom Indonesia, owning approximately 52% of its shares.
Coverage Telecommunications sector

INDONESIA

N/A

Pillar Telecom infrastructure & competition  |  Indicator Functional/accounting separation for operators with significant market power
Requirement of accounting and functional separation for dominant network operators
Indonesia mandates functional and accounting separation for operators with significant market power (SMP) in the telecom market.
Coverage Telecommunications sector

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 February 2012

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Ministry of Manpower and Transmigration Regulation No. 40/2012
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.
Coverage Horizontal

INDONESIA

Since March 2014, last amended in November 2020
Since August 2007, last amended in December 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Law of the Republic of Indonesia No. 7/2014 About Trade (Trade Act)

The Law of the Republic of Indonesia No. 40 of 2007 Concerning Limited Liability 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.
Coverage Horizontal

INDONESIA

Since March 2016

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Ministry of Communication and Informatics Circular Letter No. 3/2016
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).
Coverage Over-the-Top (OTT) services

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

INDONESIA

Since June 1997, entry into force in September 1997

Pillar Intellectual Property Rights (IPRs)  |  Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty
Indonesia is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.
Coverage Horizontal

INDONESIA

Since June 2012
Since October 2014

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Defence Law 2012

Presidential Regulation 76/2014
Indonesia's 2012 Defence Law and Presidential Regulation 76/2014 prioritise the use of local materials and components by defence agencies, emphasising the procurement of locally produced goods and services whenever possible. Additionally, in cases where Indonesian government entities procure from foreign defence suppliers due to local supply limitations, regulations mandate "trade balancing" offsets. These offsets can include incorporating local content, production offsets, technology transfer, or a combination of these measures.
Coverage Public sector

INDONESIA

Since October 2014

Pillar Intellectual Property Rights (IPRs)  |  Indicator Copyright law with clear exceptions
Law of the Republic of Indonesia No. 28 of 2014 on Copyright (Undang-undang (UU) No. 28 Tahun 2014)
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.
Coverage Horizontal

INDONESIA

Since October 2019

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
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)
Government Regulation No. 71/2019 requires operators of electronic systems for public purposes to store electronic transaction data within Indonesia, unless the necessary technology is unavailable locally. Public Electronic System Operators (ESOs) include: (a) public bodies, such as central and regional executive, legislative, and judicial bodies, as well as any other entities established under statutory mandates; and (b) entities appointed by public bodies to operate electronic systems on their behalf.
Previously, Government Regulation No. 82, which was revoked by Regulation No. 71/2019, mandated that electronic system operators for public services connect their data to a data centre and a disaster recovery centre located within Indonesian territory for purposes of law enforcement and data protection (Art. 17). Although the term “public services” was not explicitly defined under GR 82, it was broadly interpreted by the Ministry of Communications and Informatics (MOCI) to include all services offered to the public via the Internet. This interpretation effectively extended local storage obligations to numerous private sector companies.
Coverage Electronic systems operators for public scope

INDONESIA

Reported in 2020, last reported in 2025

Pillar Intellectual Property Rights (IPRs)  |  Indicator Enforcement of copyright online
Reported widespread online piracy and unlicensed software use
It is reported that online piracy facilitated through illicit devices and applications is widespread. Stakeholders indicate that Indonesia has one of the highest rates of music piracy globally and that domestically operated piracy websites and services have seen a marked increase in popularity, accompanied by limited enforcement efforts against their activities. The unlicensed use of software is also reported to be a significant and ongoing concern.
Coverage Horizontal

INDONESIA

Since April 2020

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Ministry of Finance Regulation No. 115/PMK.06/2020
The Ministry of Finance Regulation No.115/PMK.06/2020, which replaces the Ministry of Finance Regulation No. 65/PMK.06/2016 mandates foreign entities to establish an Indonesian limited liability company before utilising the state-owned property for undertaking the public procurement of the infrastructure projects (including telecommunication infrastructure) under the public-private partnership scheme. This requirement has already been in place since 2016. Nevertheless, this represents a liberalisation for foreign companies in Indonesian public procurements since it previously required the prioritisation of domestic service suppliers.
Coverage Telecommunication infrastructure

INDONESIA

Since December 1996, entry into force in March 2002

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
Indonesia has adopted the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

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