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Law mandating tech giants to pay media ready in March

"We're discussing and we're making it perfect and if we do a marathon job, this could be over in less than a month," Usman said in a statement on Wednesday.

News Desk (The Jakarta Post)
Jakarta
Thu, February 16, 2023

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Law mandating tech giants to pay media ready in March This handout picture taken on Sept. 20, 2019 and released by the Presidential Palace shows President Joko “Jokowi“ Widodo (left) with State Secretary Pratikno. (AFP/Presidential Palace)

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ommunications and Information Ministry director general of information and public communication Usman Kansong said on Wednesday that the deliberation of a draft regulation that would allow media companies to receive payment from global tech platforms would wrap up in March. 

"We're discussing and we're making it perfect and if we do a marathon job, this could be over in less than a month," Usman said in a statement on Wednesday.

Under the planned regulation, media outlets would receive payments from digital platforms or aggregators that carry their content.

Mechanisms for such payment, including negotiations on the issue, will be directed by an independent body to be set up based on the planned regulation.

President Joko "Jokowi" Widodo, who has thrown his weight behind the proposal, said in his speech during National Press Day last week that the draft for the new regulation should be ready in another month.

In the speech, President Jokowi also cited an urgent need for the new law since 60 percent of the advertising market in Indonesia is dominated by mainly foreign digital platforms. 

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"Around 60 percent of advertisement spending is taken by digital media, especially foreign platforms. This is sad," he said.

The planned regulation, proposed two years ago, was inspired by similar legislation in Germany and Australia.

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