Friday, June 14, 2024

How-to understand broadcasting media regulation in Indonesia

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Media is a changing and evolving industry that creates jobs, goods and services and revives related industries. Media is also an industry in itself that has rules and norms that link these institutions to society and other social institutions. Media behavior cannot be separated from the interests of the parties associated with the media system. These parties are media workers (journalists), media owners (businessmen), audience (society) and regulators (government).

Governing law and regulation 

  • Law No. 32/2002 on Broadcasting
  • Law No. 40/1999 concerning the Press
  • Government Regulation (PP) No. 46/2021 concerning Post, Telecommunications and Broadcasting

Press media 

The press is a social institution and vehicle for mass communication that carries out journalistic activities including seeking, obtaining, possessing, storing, processing and conveying information in the form of writing, sound, images, sounds and images, as well as data and graphics. Other forms include printed media, electronic media and all available channels. A press company is an Indonesian legal entity that operates a press business including print media companies, electronic media and news agencies, as well as other media companies that specifically organize, broadcast or distribute information.

General rule of broadcasting

Broadcasting is the activity of transmitting broadcasts through broadcasting facilities or transmission facilities on land, at sea or in space using a radio frequency spectrum via air, cable or other media to be received simultaneously by the public with broadcast receiving equipment. In organizing broadcasting, an institution must have a broadcasting operation permit from the state.

Broadcasting is carried out in one national broadcasting system. In the national broadcasting system, the State controls the radio frequency spectrum used for broadcasting for the greatest prosperity of the people. For broadcasting, the Indonesian Broadcasting Commission (KPI) is formed. It is independent in regulating matters concerning broadcasting.

Broadcasting can be done via radio or television. It can be hosted by:

  1. Public Broadcasting Institutions. This is a broadcasting institution in the form of a legal entity established by the state, which is independent, neutral, non-commercial, and functions to provide services for the benefit of the community.
  2. Private Broadcasting Institution. This is a commercial broadcasting institution in the form of an Indonesian legal entity whose line of business is to provide radio or television broadcasting services. Foreign nationals may become administrators of Private Broadcasting Institutions only for the financial and technical fields. Private Broadcasting Institutions are established with initial capital wholly owned by Indonesian citizens or Indonesian legal entities. Private Broadcasting Institutions can make additions and developments in order to fulfill capital originating from foreign capital, which amounts to a maximum of 20% of the total capital and a minimum of 2 shareholders. Private Broadcasting Institutions are also required to provide opportunities for employees to own company shares and share company profits. Private Broadcasting Institutions for radio and television broadcasting services can only provide 1 broadcast with 1 broadcast channel in 1 broadcast area coverage.
  3. Community Broadcasting Institution. This is a broadcasting institution in the form of an Indonesian legal entity, established by a certain community, independent and non-commercial, with low broadcast power, limited area coverage, and to serve the interests of its people. Community Broadcasting Institutions are not organized to seek profit or profit or are not part of a company that only seeks profit but to educate and advance the community in achieving prosperity, by implementing programs that include culture, education, and information that describe national identity. Community Broadcasting Institutions are non-partisan communities whose organizations do not represent foreign organizations or institutions and are not the international community, are not associated with prohibited organizations, and are not for the propaganda purposes of certain groups or groups. Community Broadcasting Institutions are established at the expense of the contributions of a particular community and become the property of that community. Community Broadcasting Institutions may obtain funding from donations, grants, sponsorships, and other legal and non-binding sources. Community Broadcasting Institutions are prohibited from receiving initial funding assistance to establish and operate funds from foreign parties. Community Broadcasting Institutions are prohibited from broadcasting advertisements or other commercial broadcasts, except for public service advertisements.
  4. Subscription Broadcasting Agency. Is a broadcasting institution in the form of an Indonesian legal entity whose line of business is to provide subscription broadcasting services and must first obtain a license to operate subscription broadcasting. Subscription Broadcasting Institutions send or distribute their broadcast material specifically to subscribers via radio, television, multimedia, or other information media. Subscription Broadcasting Institutions consist of Subscriber Broadcasting Institutions via satellite, cable, or terrestrial. Subscription Broadcasting Institutions via satellite must meet the following requirements:
  • have broadcast coverage that can be received in the territory of the Unitary State of the Republic of Indonesia;
  • has a broadcast control station located in Indonesia;
  • owns broadcasting stations to satellites located in Indonesia;
  • using a satellite that has landing rights in Indonesia; and guarantees that broadcasts are received only by subscribers. 

Subscription Broadcasting Institutions via cable and terrestrial must meet the following requirements:

  • have broadcast coverage that covers one service area in accordance with the license granted; and
  • guarantees that broadcasts are only received by subscribers.

In carrying out its broadcasts, Subscription Broadcasting Institutions are required to:

  • perform internal censorship of all broadcast contents to be broadcast or distributed;
  • provide at least 10% of the channel capacity to distribute programs from Public Broadcasting Institutions and Private Broadcasting Institutions; and
  • provide 1 (one) broadcast channel of domestic production compared to 10 (ten) broadcast channel of foreign production at least 1 (one) broadcast channel of domestic production.

Subscription Broadcasting Institution financing comes from subscription fees and other legitimate businesses related to broadcasting operations.

Broadcasting License

Business Licensing for broadcasting with television and radio media is granted through an evaluation mechanism. Applications for Business Licensing for Broadcasting through terrestrial media for Private Broadcasting Institutions and Subscriber Broadcasting Institutions can be submitted after the announcement of the opportunity for Broadcasting by the Minister. In the event that in 1 broadcasting service area, the number of applications for Business Licensing for Broadcasting exceeds the availability of radio frequency channels and/or the availability of multi-texting slots, the Business Licensing is granted through a selection mechanism. Broadcasting can be carried out with a broadcast area covering all of Indonesia, regionally, and/or locally with prior approval from the Minister. Broadcasting operations for broadcast area coverage covering all of Indonesia can only be carried out by:

  • Republic of Indonesia Radio Public Broadcasting Institution;
  • Republic of Indonesia Television Public Broadcasting Institution;
  • Private Broadcasting Institution for television broadcasting services through terrestrial media for broadcast program services;
  • Private Broadcasting Institutions through satellite media; or
  • Subscription Broadcasting Institutions through satellite media or cable media.

Broadcasting for regional and/or local broadcast area coverage can be carried out by:

  • Local Public Broadcasting Institutions;
  • Private Broadcasting Institution radio broadcasting services through terrestrial media;
  • Private Broadcasting Institution for television broadcasting services through terrestrial media for broadcast program services;
  • Private Broadcasting Institutions television broadcasting services terrestrial media multiplexing services;
  • Community Broadcasting Institution; or
  • Subscription Broadcasting Institutions through terrestrial and/or cable media.

Broadcasting institutions that carry out broadcasting through terrestrial media with broadcast area coverage covering all of Indonesia are required to have branches at least in provincial capitals and broadcast in broadcast area coverage covering all of Indonesia. Private Broadcasting Institutions that carry out digital broadcasting through terrestrial media with broadcast area coverage covering all of Indonesia and regionally, their broadcasts must contain local content at least 100% of the total broadcast time per day. The coverage of broadcast areas covering all of Indonesia, regionally or locally is determined by considering:

  • Broadcasting industry health;
  • the ability and readiness of the organizers;
  • availability of multiplexing slots; and/or
  • availability of Radio Frequency Spectrum based on the master plan of Radio Frequency Spectrum for Broadcasting purposes.

Private Broadcasting Institutions may provide their services with a network station system with a broadcast area coverage throughout Indonesia, with the following conditions:

  • the main network station and members of the network station are Private Broadcasting Institutions located in the provincial and/or district/city capitals; and
  • for the same event, network station broadcasts can be broadcast through relay stations to all regions within 1 province

Any change in name, office address, composition of management, and/or shares by a Broadcasting institution must be reported to the Minister no later than 1 month after the change is made. Any change in share ownership, either directly or indirectly, in Private Broadcasting Institutions and Subscriber Broadcasting Institutions must be carried out in accordance with the provisions of laws and regulations. Changes in share ownership of Private Broadcasting Institutions are prohibited from causing violations of the provisions of foreign ownership, concentration of ownership, or cross ownership. Changes in the share ownership of the Subscribing Broadcasting Institution are prohibited from causing a violation of the provisions of foreign ownership or cross ownership. In carrying out its broadcasts, the Subscription Broadcasting Institution is obliged to:

  • conduct internal censorship of all broadcast contents to be broadcast and/or distributed;
  • provide at least 10% of the channel capacity to distribute programs from Public Broadcasting Institutions and Private Broadcasting Institutions; and
  • provide 1 domestically produced broadcast channel compared to 10 foreign production broadcast channels with the following conditions:
  • in the case of distributing broadcast channels of production of 10 or more, the ratio of broadcast channels of domestic production and broadcasting of foreign production is 1 to 10 by rounding up the numbers; or
  • in terms of distributing less than 10 production broadcast channels, provide at least 1 domestic production broadcast channel.

The broadcast radius of Community Broadcasting Institutions Radio broadcasting services broadcasting through terrestrial media is limited to a maximum of 2.5 km from the transmitter location or with a maximum Effective Radiated Power of 46.99 dBm. This limitation is excluded for Community Broadcasting Institutions that broadcast through terrestrial digital television broadcasting multiplexing services.

Prohibition of Foreign Broadcasting Institutions in Indonesia

Foreign Broadcasting Institutions are prohibited from being established in Indonesia. Foreign Broadcasting Institutions can only carry out reporting activities in Indonesia, which include:

  • broadcast activities on a regular basis. Foreign Broadcasting Institutions that organize non-permanent broadcasting activities in Indonesia may bring equipment to send and receive broadcasts from satellites and/or other media.
  • journalistic activities. Foreign Broadcasting Institutions that organize journalistic activities in Indonesia can place correspondents to carry out journalistic activities or open foreign broadcasting offices to support the administrative field. 

Reporting activities of Foreign Broadcasting Institutions in Indonesia and their supporting facilities must obtain permission from Minister of Communication and Information.

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