INDONESIA Law and Practice Contributed by: Agus Ahadi Deradjat (Agung), Mahiswara Timur, Nina Cornelia Santoso and Natasya Nurul Amalia, ABNR Counsellors at Law
Telecommunications Services Under the Telco Law, telecommunications ser - vices are classified as follows: • telecommunications network – a network that enables the implementation of telecommu - nications – this covers the provision of fixed network and mobile network operations (cel - lular, satellite or terrestrial); • telecommunications services – services that enable the implementation of telecommunica - tions – this covers basic telephony service providers, value-added telephony service providers, multimedia services (ISPs, network access points (NAPs), data communication services and internet protocol television ser - vices); and • special telecommunications services – tel - ecommunications operations that are special - ised in nature, designation and operation (ie, designed for research or government agen - cies). The operation of telecommunications in Indone - sia may only be performed by a licensed Indo - nesian legal entity. Radio Frequency Spectrum Use The radio frequency spectrum is considered a finite resource in Indonesia. Its use in telecom - munications services is therefore regulated under MCIT Regulation No 7 of 2021 on the Use of Radio Frequency Spectrum, as partially revoked by MCIT Regulation No 9 of 2023 (MR 7), which distinguishes three licences that must be obtained by businesses: • radio frequency band licence ( Izin Pita Frek- uensi Radio IPFR) ‒ a licence to use the radio frequency spectrum in the form of a radio frequency band;
• radio station licence ( Izin Stasium Radio ISR) ‒ a licence to use the radio frequency spectrum in the form of a radio frequency channel; and • class licence ‒ a licence for the use of the radio frequency spectrum in association with a telecommunications tool and/or telecom - munications equipment certificate. Further, in an effort to boost the development of telecommunications technology in Indone - sia, the government allows a spectrum-sharing arrangement, which is subject to contractual agreement between telecommunications opera - tors. Certification of Telecommunications Equipment and/or Devices Pursuant to MCIT Regulation No 16 of 2018 on Operational Provisions for the Certification of Telecommunications Equipment and/or Devic - es, telecommunications devices manufactured, assembled or imported to be traded and/or used in Indonesia must be certified to prove they are compliant with the prescribed technical specifi - cation and/or standards. Internet Business Undertaking GR 46/2021 refers to OTT services as busi - ness activities conducted via the internet in the form of telecommunications service substitutes, audio and/or visual content platforms and/or other services as determined by the MOCD. OTT services providers must co-operate with local telecommunications operators, pursuant to MR 5/2021, upon meeting a “significant pres - ence” criterion based on the traffic percentage or daily active user volume. Although the regulations do not provide sanc - tions for non-compliance with the co-opera - tion requirement, GR 46/2021 and MR 5/2021
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