+

Broadcasting Policy in Indonesia Directorate General of Posts, Telecommunication and Broadcasting Ministry of Communication and Information Technology

+Types of Broadcasting Institution

Public Broadcasting Institution

Private Broadcasting Institution

Subscribed Broadcasting Institution

Community Broadcasting Institution

+Public Broadcasting Institution

Public Broadcasting

Institution

TVRI (Television of the Republic of Indonesia) – Nationwide Coverage

Local Public Broadcasting Institution – Local Coverage

RRI (Radio of the Republic of Indonesia) – Nationwide

Coverage

+RRI and TVRI n  Nationwide coverage and consist of central and local station.

n  RRI and RRI are independent, neutral, and non-commercial.

n  Under the authority of and responsible to the President of the Republic of Indonesia.

n  Responsible for providing services in information, education, good quality entertainment, social bonding to preserve the national culture for the sake of public interests.

Local Public Broadcasting Institution A legal entity established by local government, carries out radio or television broadcasting, independent, neutral, non-commercial and serves to provide services for the public interests that its broadcasting system is networked with RRI or TVRI.

+Coverage Area of RRI and TVRI

RRI -  59 local stations -  148 relay stations TVRI

-  24 local stations -  376 relay stations

+Private Broadcasting Institution

Private Broadcasting Institution

Terrestrial System

Satellite System

-  analog/digital AM/MW Radio

-  analog/digital FM Radio

-  analog/digital TV -  Multiplexing

-  analog/digital Radio -  analog/digital TV -  multiplexing

+Private Broadcasting Institution

n  Established by Indonesian citizen.

n  Indonesian legal entity in form of limited liability company.

n  Its line of business only provides services for radio or television broadcasting.

n  Entire initial capital owned by Indonesian citizen and/or Indonesian legal entity wholly owned by Indonesian citizen.

n  In 1 (one) coverage area broadcaster can only provide 1 (one) broadcast program in 1 (one) channel.

+Capital Provisions for Private Broadcasting Institutions

n  Entire initial capital owned by Indonesian citizen and/or Indonesian legal entity wholly owned by Indonesian citizen.

n  Capital increment from foreign investors and/or foreign legal entities must be not more than 20% of the entire issued share capital or paid up capital and owned by 2 (two) shareholders.

n  Capital increment limitation by foreign investors and/or foreign legal entity carried out either directly and indirectly.

n  80% of the capital should remain owned by Indonesian citizen.

n  Any shares transaction that led to ownership of foreign capital exceeds 20% shall be returned to 20%.

+Provisions on Ownership Concentration

Radio Broadcasters: •  1 (one) legal entity 1 (one)

broadcasting license. •  Max 100% share

ownership in 1st to 7th legal entity.

•  Max 49% share ownership in 8th to 14th legal entity.

•  Max 20% share ownership in 15th to 21st legal entity.

•  Max 5% share ownership in 22nd legal entity and so on.

Television Broadcasters: •  1 (one) legal entity 2 (one)

broadcasting licenses in different province.

•  Max 100% share ownership in 1st legal entity.

•  Max 49% share ownership in 2nd legal entity.

•  Max 20% share ownership in 3rd legal entity.

•  Max 5% share ownership in 4th legal entity and so on.

+Provisions on Cross Ownership

n  LIMITATIONS :

è1 Private Radio Broadcasters + 1 Subscribed Broadcasters + 1 Printed Media in the same area.

è1 Private TV Broadcasters + 1 Subscribed Broadcasters + 1 Printed Media in the same area.

è1 Private Radio Broadcasters + 1 Private TV Broadcasters + 1 Subscribed Broadcasters in the same area.

+Subscribed Broadcasting Institution

Subscribed Broadcasting Institution

Satellite

Cable

Terrestrial

+Subscribed Broadcasting Institution

n  Established by Indonesian citizen.

n  Indonesian legal entity in form of limited liability company.

n  Its line of business only provides services for radio or television broadcasting.

n  Entire initial capital owned by Indonesian citizen and/or Indonesian legal entity wholly owned by Indonesian citizen.

Main Points Distribution of broadcast programs only to its subscribers and should have rights for every programs that transmitted.

+Provisions on Subscribed Broadcasting Implementation n  Must conduct internal censorship.

n  Provide at least 10% of the channel capacity to transmit programs from public broadcasting institution and private broadcasting institution.

n  Provide minimum 1 (one) channel for domestic programs for every 10 (ten) channels foreign programs.

n  Should provide receiver device and related terminal.

Particular Provisions for Subscribed Broadcasting Institution via Satellite

n  Should have national coverage area.

n  Should have a head-end station located in Indonesia.

n  Should use satellite that has landing right in Indonesia.

n  Should ensure that the programs only receive by its subscribers.

+Broadcasting Licensing Procedures

1.  The announcement of Broadcasting Business Opportunities by the Minister of Communication and Information Technology, in particular for private broadcasting institution and terrestrial subscribed broadcasting institution.

2.  Hearing Evaluation by Indonesian Broadcasting Commission.

3.  Coordination Meeting of the Joint Meeting Forum between the Government and the Indonesia Broadcasting Commission.

4.  Joint Meeting Forum between the Government and the Indonesian Broadcasting Commission.

5.  Issuance of the Principle Broadcasting License or Refusal Letter.

6.  Infrastructure development, frequency licensing application and other licenses, human resources recruitment, broadcast programs acquisitions, etc.

7.  Trial broadcasts (max. 6 months for radio services and 1 year for TV services).

8.  Trial broadcasts evaluation.

9.  Issuance of permanent broadcasting license with validity period of 5 years for radio and 10 years for TV.

+Broadcasting Licensing

NO DESCRIPTION RADIO TV TOTAL 1 NUMBER OF APPLICANT 2.710 799 3.509

2 NUMBER OF APPROVED LICENSING APPLICANT

1.173 291 1.464

data per December 2010

+System of Networked Stations

n  System of Networked Stations is a system that governing the regular inter-relay of broadcast programs between broadcasting institutions.

n  Local Broadcasting Station is a broadcasting station established in particular area with particular coverage in the area where the station is established and should provides its own studio and transmitter equipment.

n  Relay Stations is a station serves to transmit broadcast programs to another coverage area.

n  Local Broadcast Program is a program with local content in local area.

+Configuration of System of Networked Stations

Ditjen Postel-Depkominfo

Satellite

Province A

INDONESIAN TERRITORY

MEMBER STATION

RELAY STATIONS

Province B

BASE STATION

MEMBER STATION

RELAY STATIONS

+The Development of Digital Terrestrial TV Broadcasting

+Digital TV Business Model

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+Policies on Set Top Box (STB)

Minimum  domes+c  content  level  of  at  least  20%  and  increased  gradually  to  50%  within  5  years.      

Set Top Box should comply to the technical provisions based on the Indonesia legislation.

Set  Top  Box  should  comply  to  the  technical  requirements  based  on  the  Indonesia  legisla+on.    

+Legal Basis for the IPTV Services

21  

IPTV

LAW  NO.  32/2002  ON  BROADCASTING  

LAW  NO.  36/1999  ON  

TELECOMMUNICATION  

LAW  NO.  11/2008  ON  INFORMATION  &  

ELECTRONIC  TRANSACTION  

+Policy Orientation for IPTV Services

Service Public

Business Operator

Easy, Cheap, Good, Variation, Secure, …

Competition, Cooperation, Fairness, Neutrality, Efficiency, Investment, …

Standardization, Diversity, Empowering, … Technology Provider

+ THANK YOU