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Businesses vigilant as revised digital tech law opens door for govt interference
The Communications and Information (ICT) Ministry said that the objective of the article is to maintain a level playing field in the country's digital realm.
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An photo taken on Jan. 25, 2021, shows applications on a smartphone. (AFP/Odd Andersen)
I
ndonesia has passed a law that allows the government to force digital platforms in the country to make obligatory adjustments, which according to an analyst may open the door for state intervention in the digital sector, affecting certainty among business players in the archipelago.
That is according to article 40A of the newly revised Electronic Information and Transactions (ITE) Law, which the government and the House of Representatives passed on Tuesday.
The article stipulated that the government has the right to ask digital platforms to 'make adjustments' to their systems or 'take certain actions'.
Digital platforms refusing to carry out the order could face administrative punishment ranging from warnings to termination of access.
However, details on the type of interventions that the government could conduct and incidents applicable for the clause would only explain further on upcoming implementing regulation.
The Communications and Information Ministry explained on Tuesday that Article 40A was created to maintain a level playing field, including by preventing a single entity from dominating, while assuring that smaller players could still grow their businesses.
The ministry also made an example in the payment sector, saying that if there is a digital platform that forces customers to do transactions with a single payment method, the government could interfere to maintain balance in the ecosystem.
