T

he government will issue a ministerial decree to regulate over-the-top (OTT) companies — such as Google, Twitter, Skype, Facebook, WhatsApp and Line — this year, to ensure a level playing field between local and foreign companies.

The plan was unveiled on Tuesday at the ITU Telecom World 2017 global forum during the ministerial round table meeting, attended by ministers and deputy ministers from various countries including Azerbaijan, Belarus, Cameroon, Malaysia and the Philippines.

Communication and Information Minister Rudiantara said that it was crucial for foreign OTT companies to comply with the regulations set by each country, especially regarding taxation.

“By the end of this year, Indonesia will issue a ministerial decree regarding OTT companies. We welcome investment in Indonesia […] but they [OTT content providers] must also comply with our policies,” he said in Busan, South Korea.

The regulation aims to foster a local tech-industry, and at the same time give global OTT companies the opportunity to develop business in Indonesia, said Rudiantara. The ministerial decree will contain three main provisions, namely quality of service, data protection and an equal playing field regarding taxation.

The provision on quality of service refers to government demands for global OTT companies to provide customer services in Indonesia, so they can easily respond to customers’ problems. Secondly, the government requires OTT companies’ commitment to protecting customer data and prevent identity theft. Thirdly, to ensure an equal playing field, the government demands the OTT companies to settle their tax liabilities.

“When I went with the President to Silicon Valley, we had a private meeting and raised the issue with Mark Zuckerberg and Sundar Pichai. We said that we welcome them to do business in our country, but they have to settle their tax liabilities,” Rudiantara said.

The minister has shared the content of the decree with Facebook, Twitter and Google, and is optimistic that the tech giants will follow the rules. After the ITU Telecom World 2017 global forum, he will visit Silicon Valley, San Fransisco, and plans to raise the issue again with the global OTT companies based there.

If the foreign OTT companies do not comply with Indonesian regulations, the government will impose sanctions based on the Electronic Information and Transactions (ITE) Law. Such confidence is built on the fact that with a population of 260 million people, Indonesia is the largest market in Southeast Asia for OTT companies.

The discussion over OTT companies, which Indonesia raised during the ITU telecom ministerial meeting, has attracted attention from leaders of other countries who are dealing with similar issues.

However, the International Telecommunications Union (ITU), an international forum for governments and the private sector to coordinate policy matters, refrained from commenting on the issue. “It is a very sensitive issue. It is not clear if this is part of the mandate of the ITU,” Catalin Marinescu, ITU head of corporate strategy, said during the ministerial roundtable meeting.