Global OTT Must generates benefits for Indonesia

Ilustrasi (dok)

JAKARTA (IndoTelko) - Indonesian Telecommunications Regulatory Body (BRTI) confirmed the role of Over The Top (OTT) should generates benefits to the Indonesian community and government.

"We want global players to generate benefits. Do not just put on the market and does not provide any benefit for the country," said the regulatory body’s Commissioner Member Muhammad Imam Nashiruddin, yesterday

He said that currently the OTT business in Indonesia is done directly to the market and does not benefit the country in the form of taxes and others.

"To stop them from bypassing should be embraced and encouraged with cooperation with local operators. So we encourage them to be a permanent Business Entities (BUT) in Indonesia to cooperate with operators," He said.

XL Axiata President Director Dian Siswarini said that there is some open cooperation for global OTT, such as carrier billing. "Carrier billing is clear can generate revenue to the country," Dian said.

Meanwhile, the Minister of Communication and Information Rudiantara confirmed that the ministry to issue a ministerial regulation related on OTT by the end of March 2016.

The government will regulate foreign OTT to set up a permanent establishment in Indonesia. The permanent establishment could include the establishment of direct company in Indonesia, a joint venture with local companies as well as cooperation with the carrier.

The regulation will clarify the identity and legal certainty of the global OTT in Indonesia so that they can fulfill their rights and obligations. The existence of permanent legal entities will enable customers and workers to interact with liable companies.

Besides, the Indonesian government and community would not be disadvantaged, because the existence of a permanent establishment is regulate these OTT to an obligation to pay taxes. On the other hand, the enterprises will also create parallel competition with Indonesian OTT.

"Efforts to prepare the OTT related regulations, is to avoid shocks that are not productive. For example, the French government collects Rp23 trillion taxes to Google. This makes a startled. We are a friendly nation to investment, we must be competitive Indonesia but also must protect the interests of Indonesian society," he said.

OTT is a business player that is identical as the operator's data content feeder. OTT players are considered as a latent danger for operators because it does not emit huge investment, but make profits above the operator's network.

There are four OTT areas that intersect with telecommunication companies. First, the Voice and Messaging/Social Media OTT such as Skype, whatsapp, LINE, Viber, KakaoTalk, GoogleTalk, WeChat, and Telegram.  

This kind of OTT have long been eroded the operator's voice and SMS earnings. While the next two are Content/Video OTT and Cloud Computing OTT are believed to be the highest growth OTT in the near future.(es)