Indonesia: Building Up Regulations to Support Digital Economy
The issuance of Law No. 11 of 2020 on Job Creation and its implementing regulations, in particular Government Regulation No. 46 of 2021 on Postal, Telecommunication and Broadcasting and Presidential Regulation No. 10 of 2021 on Capital Investment Business Fields, proposes significant regulatory changes to the technology and telecommunication sectors.
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The issuance of Law No. 11 of 2020 on Job Creation (commonly known as the “
Omnibus Law“) and its implementing regulations, in particular Government Regulation No. 46 of 2021 on Postal, Telecommunication and Broadcasting (“
Regulation 46“) and Presidential Regulation No. 10 of 2021 on Capital Investment Business Fields (commonly known as the “
Priority List“), proposes significant regulatory changes to the technology and telecommunication sectors. With the various liberalization and investment incentives offered, the government expects to boost growth in t
In brief
Up to now, there was not a clear position on the obligations (including registration obligation) for offshore or foreign private electronic system operators (“
ESOs”).
MOCI”) Regulation No. 5 of 2020 on Private Electronic System Operators (“
MOCI Regulation 5”), which clarifies registration requirements and other obligations for foreign private ESOs.
MOCI Regulation 5 is an implementing regulation of Government Regulation No. 71 of 2019 on the Implementation of Electronic Transactions and Systems (
GR 71 ). The regulation became effective on 24 November (but it was only published on the MOCI’s website on 2 December).
There is a six-month transitional period under the regulation, but this is only applicable for the requirement for private ESOs to register with the MOCI.