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INDONESIA

Since April 1994

Pillar Telecom infrastructure & competition  |  Indicator Signature of the WTO Telecom Reference Paper
WTO Telecom Reference Paper
Indonesia has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

INDONESIA

Reported in 2017, last reported in 2025

Pillar Telecom infrastructure & competition  |  Indicator Presence of an independent telecom authority
Lack of an independent telecom authority
It is reported that Indonesia lacks a telecommunications authority whose decision-making process is independent of the government. In general, matters relating to telecommunications are regulated and supervised by the Ministry of Communication and Digital.
Coverage Telecommunications sector

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

INDONESIA

Since January 2014

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 02/M-IND/PER/1/2014 (Peraturan Menteri Perindustrian 02/M-IND/PER/1/2014)
The Ministry of Industry Regulation No. 02/M-IND/PER/1/2014, issued on 13 January 2014, replaced Regulation No. 15/M-IND/PER/2/2011 and introduced restrictions on public procurement to promote the use of domestic products. The regulation establishes a framework for categorising public goods and services based on the Domestic Component Level (TKDN) and the Company Utilization Point Rating (BMP), which evaluates suppliers' investments in Indonesia. The BMP considers factors such as support for micro and small enterprises, compliance with work, health, and environmental safety standards, and possession of a quality management certificate (Art. 1(8) of the regulation).
According to Art. 6, goods are classified into three categories based on the cumulative scores of TKDN and BMP:
- Obligatory Goods: These must have a cumulative score of over 40%, including at least 25% of TKDN.
- Maximised Goods: These must have a cumulative score of over 40%, including at least 15% of TKDN.
- Empowered Goods: These must achieve a TKDN score of at least 10%.
Coverage Horizontal

INDONESIA

Since March 2018, last amended in February 2021

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Art. 67 of Presidential Regulation No. 16/2018 provides that a price preference applies to goods procurement with a maximum of 25%. For construction works under the international tender selection method, the price preference is given to a maximum of 7.5% to national business entities above the lowest bid price of foreign business entities. The price preference applies to procurement having a value of more than Rp one billion (approx. USD 67,000).
Coverage Horizontal

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