Judul : Prabowo Asked to Be Firm, Encourage Netflix - Google Companies Involved in Building IT Infrastructure
link : Prabowo Asked to Be Firm, Encourage Netflix - Google Companies Involved in Building IT Infrastructure
Prabowo Asked to Be Firm, Encourage Netflix - Google Companies Involved in Building IT Infrastructure
Best for you JAKARTA — President Prabowo Subianto asked to actively participate in promoting technology giants such as Google , Netflix , and YouTube in building infrastructure in Indonesia.
As for those who are not willing to participate in the development, the government is requested to implement a revenue-sharing policy between OTT and telecommunications companies that have built the infrastructure. internet .
Supervisor Board of Telematics Community (MASTEL) Agung Harsoyo said that Over-the-Top (OTT) platforms such as Facebook, Google, and Netflix as well as other OTT platforms have generated a significant surge in data traffic.
At the same time, OTT also charges customers for a number of exclusive services. OTT businesses that are profitable without being balanced by involvement in the development of domestic internet connectivity, while the government needs support to increase speed and expand internet services.
Agung suggested that the government should actively involve OTT in infrastructure development. Even if OTT refuses, the government can implement a revenue-sharing scheme between OTT and local players, as done by some Asian countries.
"Government needs to be the architect who designs a fair cooperation model, such as the Fair Share Model in South Korea based on traffic volume (cost recovery), or Revenue Sharing proposed by India through sharing OTT revenue from advertisements and subscriptions," said Agung, quoted on Sunday (7/6/2025).
Just for information, in 2024, Netflix recorded revenue of US$13 billion or Rp631.34 trillion (exchange rate: Rp16,188). Netflix projects that their revenue this year can reach Rp720.41 trillion.
If compared to the revenue of telecommunications companies in Indonesia, this amount is almost 4 times the revenue recorded by PT Telkom Indonesia (Persero) Tbk. during the same period and 12 times higher when compared to the revenue of PT Indosat Tbk. (ISAT).
Meanwhile, Google's parent company, Alphabet, earned Rp1,376 trillion from advertising in the second quarter of 2024. This amount is 8 times higher than Telkom's revenue and 24 times higher than Indosat's income.
As for in India, by the end of 2024, telecom industry leaders, such as Chairman of Reliance Jio Akash Ambani, Managing Director of Reliance Jio Pankaj Pawar, Vice Chairman of Bharti Enterprises Rajan Mittal, and Managing Director of Vodafone Idea Akshaya Moondra, cried out and demanded fair contributions from Over The Top (OTT) service providers towards network costs.
At the meeting, executives from Reliance Jio, Bharti Airtel, and Vodafone Idea emphasized the importance of OTT services, particularly Large Traffic Generators (LTGs) or major data traffic contributors, sharing some of the network costs. They stressed that this proposal is not aimed at startups or small businesses.
Besides the issue of OTT contributions, the telecommunications industry also discussed matters related to the Goods and Services Tax (GST), including challenges in claiming input tax credits. This discussion is part of the efforts by Minister Scindia for communication to obtain updates regarding developments in the telecommunications sector.
Agung also emphasized the importance of cooperation between OTT and telecommunications operators to maintain security and national sovereignty, due to the prevalence of fraud through OTT services such as WhatsApp used for sending OTPs.
This situation is worsened by the storage of global OTT user data abroad and the absence of regulations capable of fairly regulating their obligations in Indonesia.
Indonesia, according to Agung, actually already has a regulatory framework regarding the cooperation between OTT and telecommunications providers through Government Regulation (PP) No. 46 of 2021 on Postal, Telecommunications, and Broadcasting as well as Ministerial Regulation (PM) No. 5 of 2021 on Telecommunications Services. However, these regulations are not imperative or binding.
At the beginning of the regulation drafting, the government stipulated the obligation of cooperation between OTT and operators as a legal obligation, but was hindered by differences in views between the pro-investment and pro-sovereignty parties.
Finally, the government chose an investment-friendly approach, so cooperation is no longer mandatory in PP 46/2021 and PM Komdigi 5/2021.
In this situation, the Indonesian government must take bold and progressive steps to strengthen the national position in the digital ecosystem.
“Hal ini dapat dimulai dengan memperkuat regulasi agar bersifat imperatif dan mewajibkan kerja sama antara OTT dan operator telekomunikasi guna memastikan bahwa penggunaan infrastruktur nasional oleh OTT global diimbangi dengan kontribusi nyata,” kata Agung.
Previously, during the hearing meeting of the VI Commission of the DPR with the Board of Directors of Telkom and the Deputy Chairman of the VI Commission of the DPR, Andre Rosiade paid attention to the disparity between the large investments of telecommunications operators in Indonesia and the large profits obtained by OTT.
According to him, regulations regarding OTT need to be implemented immediately, as they not only benefit Telkom, but also all operators and industry players to create a fair, sustainable digital ecosystem and promote the equalization of services in Indonesia.
Meanwhile, the Ministry of Communication and Digital (Komdigi) is formulating the Komdigi policy roadmap as a strategic step to strengthen the national digital ecosystem to support the government program of President Prabowo.
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