ANNOUNCEMENT 07 Feb 2017

On 7 February 2017, the Indonesian Ministry of Communications and Information Technology published regulation no. 6/2017 on Internet Protocol Television.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 07 Feb 2017 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

The regulation introduces the requirement that any consortium providing Internet Protocol Television (IPTV) must consist of at least two Indonesian entities (art. 4). Furthermore, article 6 of the regulation explicitly points to the fact that any foreign investor must comply with article 4.

In addition, every consortium providing IPTV must seek approval from the Communications Ministry. The letter seeking approval shall also provide information on all company shares belonging to foreign investors (art. 25(7)h).

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 07 Feb 2017 | Removal date: open ended
Still in force

Local sourcing

The preamble of the regulation also states that it shall help increase the growth of the local content in the IPTV industry.

In order to achieve that, IPTV providers shall provide Internet Protocol Set-Top-Boxes with a minimum local content requirement of 20%, with the amount rising to 50% within 5 years of starting operations in Indonesia.

Furthermore, the IPTV operator shall provide at least 10% of domestic content during its broadcasting services, 30% during its multimedia services, and "the number of domestic Independent Content Providers contributing to the implementation of IPTV services shall be at least 10% (ten per cent) of the number of Content providers in the Content Library of the Organizer and gradually increase to 50% (fifty Percent) within 5 (five) years." (own translation; art. 17(3) of the regulation).