Following recent bans of digital content services Netflix and Tumblr Indonesia, entrepreneurs and Internet users speak out about the motives of the government.
In recent weeks, Indonesia has attracted international media attention, be called as the country that blocks access to popular American media sites and services. Netizen chatter began in late January when Telkom, Indonesia's largest network service provider, blocked television and popular movies in Netflix streaming. Although this is a single Internet service provider (ISP) that has blocked the site, a more worrying conversation began to stir: Are other ISPs as well? Netflix would be blocked throughout Indonesia?
For the moment, no other phone companies seem to have taken cues from Telkom. public company representatives first cited pornography and violence as the main reasons for blocking Netflix. The later revealed that Netflix officials was blocked because it did not have official documentation, and did not have permission to do business in Indonesia. In the days that followed, Telkom has opened access to Netflix again temporarily, but only to allow users to cancel their subscriptions. This indicated the service would soon again be blocked.
In a similar situation, on 17 February, the Internet service popular Tumblr blogging has been blocked in Indonesia, and accused of welcome pornography. hours disorders Indonesian Tumblr user base After the service was restored. The Ministry of Communication and Information has sent a request to Tumblr, asking him to "self-censor its adult content."
thereTwo years, world renowned forum Reddit and Imgur accommodation counterpart picture have been blocked for the same reasons. the platform Vimeo popular video hosting suffered the same fate soon after.
the Tumblr incident is the fourth largest foreign Internet company to be blocked in Indonesia. But the news about raises more questions from the public about net neutrality and government censorship. at present, there seems to be no consistency with regard to whom or which will be blocked. the government says the ban Tumblr was part of a larger crackdown pornography that included nearly 500 sites. However, none of the other sites had such a large base that Tumblr user.
the biggest problem with the government of blocking services like Tumblr and Netflix is that the sites are not actually feature porn. They can provide or host content with nudity or explicit material, but nothing that could reasonably be called pornography - you would not be able to watch Naughty Nurses 12 or Tail You Got on Netflix. Reddit, however, directly hosting the content that is qualified porn.
Many have criticized the ban as nothing more than the government's attempt to obtain large foreign companies to pay taxes in Indonesia. Some believe that the explicit content is simply an excuse to try to force companies to leave the country or hand over money.
Tempo recently said the government also plans to block over-the-top (OTT) applications such as and LINE are also unlicensed. Rudiantara, Minister of ICT of the nation, said his ministry is finalizing the rules that classified services like OTT applications must comply in order to operate in the archipelago. The rules seem to cover more than the opening of an office in the country and pay taxes, as the eminent courier LINE already has an office in Jakarta.
Rudiantara said companies would be required to create new business entities in Indonesia, and the government would also seek to place them in joint ventures with local telephone companies. Failure to comply would result in the service being blocked by cellular carriers, reports Bisnis Indonesia . Rudiantara the reasoning behind the proposed regulation is that it gives the government a way to return tax money that Indonesia was "lost". The Minister said that the value of Indonesia advertising digital revenue was $ 430 million last year, and if the government imposed even a 10 per cent tax, which would have resulted in 43 million US $ for the State.
The government also faced pressure from local companies, such as Indonesia Telematics Society (Mastel), who lobbied to block foreign companies to use Indonesia as a place of "rake in the profits."
"[It’s all about] course taxes," said Aryo Ariotedjo Managing Partner Grupara Inc., a venture capital firm in Jakarta that supports young stage tech companies. "Netflix has the ability to disrupt the content industry in Indonesia, something that has not been done. Allow Netflix to do so without paying taxes would be much more expensive for Indonesia," said Ariotedjo Indonesia Expat .
Shinta Dhanuwardoyo, a leader of the local technology and CEO of the famous interactive digital agency Jakarta Bubu, has other ideas about how Netflix matter should have been handled. "Rather than block the service, the government should make a rule about local content," she said. "We need to see Netflix as a competitor that we can learn. As Indonesians, we are the ones who have the knowledge and local perspectives. "
Dhanuwardoyo believes there are many local technopreneurs who can learn from foreign companies.
prohibiting Indonesia and refusing to work with foreign companies could result in many missed opportunities for local technology startups.
It is difficult to interpret the government blocking Netflix and Tumblr simply as a "matter of pornography." The inconsistency with which Indonesia blocks websites also suggests he does not care small foreign companies that turn little profit. instead, some believe that the government was shaking down rich. for Telkom, the quick release of Netflix seems strategic. by reducing the company's service before it foothold in Indonesia, Telkom may protect its investment in streaming digital content
at present, it seems that the great startups. - or those who have large bases of user, or those who have the potential to earn a lot of money - are targeted by the Indonesian Government Meanwhile, if the major foreign companies wanted to do business safely in Indonesia, they also should incorporate locally and pay taxes..
This may be unrealistic for some companies, which is why the Investment Coordinating Board worked to reorganize the list of negative investments. He claimed that the government wants to remain open to the idea of foreign ownership in the archipelago.