Forget other regulations, Indonesia needs to talk about net neutrality

Photo credit: karochkin

The Indonesian government is struggling to create policies that support a healthy digital economy in the country.

The challenge is to protect national interests while reaping the benefits of global innovation. Everything from on-demand transportation to ecommerce has been up for debate – and in most cases, the industry and legislators seem to be inching toward a mutual understanding.

What’s still missing, however, is a government position on net neutrality.

If you’re not familiar with the concept, here’s a brief explainer: net neutrality asks internet service providers to treat all content that passes through their network equally. There should be no favoring or throttling of services, and certainly no blocking without legal mandate.

A phantom menace

Here’s why I think it’s important.

When Netflix had its international roll-out recently, Indonesia was on its list. After a few days of operation, Indonesia’s state-owned telco Telkom blocked it.

The government wants foreign companies like Google, Facebook, and Twitter to form permanent business entities in Indonesia, but it’s not yet law.

Netflix is now inaccessible to Indonesian users both on Telkom’s cable internet service as well as through the network of its mobile carrier, Telkomsel. Other internet service providers allow access to Netflix.

What justification did Telkom use to ban Netflix? Apparently, a piece of legislation that hasn’t even left the bakery.

You may have heard about the most recent Indonesian internet regulation making headlines. Tech minister Rudiantara announced that soon foreign companies like Google, Facebook, and Twitter will be required to form permanent business entities in Indonesia. Now, they only have representative offices. Operating with a permanent business license would force the companies to pay local taxes.

To add a sense of urgency, Rudiantara made it sound like a decision is just around the corner. The regulation, he told Nikkei, would be out by April.

Unilateral decision