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According to regulations announced at the end of 2020, companies providing electronic services must register for a license in Indonesia, the deadline is July 20 this year. As of July 19, there were more than 5,900 domestic enterprises and 108 foreign enterprises registered.
Facebook and Google were among the last Internet platforms to file formal business registrations in Indonesia, essentially officially bowing to the new regulations. Netflix, Spotify, Instagram and TikTok also signed up, according to Indonesia’s Ministry of Information and Communications (TT&TT).
Companies that operate social networks face increasing scrutiny from governments around the world, in agreement with their market power. Indonesian law allows the government to block services from removing content that is likely to “incite unrest” or “disturb public order” for 24 hours, such as content promoting child pornography or promoting child pornography. terrorism.
The government is also allowed to levy a value-added tax on the purchase and sale of digital goods, from content to virtual items. In addition, the government can force companies to disclose the personal data and contact information of certain users at the request of law enforcement. The government said the new regulations are intended to ensure internet service providers protect user data and online content used in a “positive and effective manner”.
According to Mr. Semuel Abrijani Pangerapan – General Director of Information Applications under the Indonesian Ministry of Information and Communications, they will send warnings first, then fines and finally close the unregistered service.
With a young and tech-savvy population, Indonesia is among the 10 largest markets in terms of the number of users of some firms such as Twitter, Facebook, and TikTok. There were an estimated 191 million social media users in Indonesia as of February, second only to China and India in the Asia-Pacific region. At the press conference, Mr. Semuel said that companies that do not comply means that they do not see Indonesia as their potential market.
According to Bloomberg, Reuters
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