PERMENKOMINFO 1/2021: NEW CHAPTER IN THE ORGANIZATION OF TELECOMMUNICATION SERVICES

The Minister of Communication and Informatics (MoCI) issued Regulation Number 1 of 2021 concerning the Second Amendment of MoCI Regulation Number 13 of 2019 on Organization of Telecommunication Services (MoCI Regulation 1/2021) that has been in force since 28 January 2021. MoCI 1/2021 was enacted to provide ease of business for Telecommunication Service Operators.

Based on Minister of Communication and Informatics Number 13 of 2019 concerning Organization of Telecommunication Services (MoCI Regulation 13/2019), telecommunication services organization is divided into three categories, namely:

(1) Organization of Basic Telephony Services,

(2) Organization of ValueAdded Telephony Services, and

(3) Organization of Multimedia Services.

However, due to the enactment of MoCI 1/2021, the Director-General of Post and Informatics (Director-General) is now authorized to establish other categories of Telecommunication Services Organization based on the development of information technology and communication as well as the soundness of the telecommunications industry.

In relation to Basic Telephony Services, under the MoCI 1/2021, circuit-switch-based local permanent network operators are now required to prioritize free SMS Blast that are sent by the Director General for important information, for instance concerning state security, natural disasters, and/or epidemics provided by ministries and/or government agencies or by other parties as determined by the MoCI.

Moreover, MoCI Regulation 1/2021 also broaden the scope of the Organization of Value-Added Telephony Services by including Premium Call Services, Premium SMS-Content Services, and/ or other Value-Added Telephony Services as established by the Director-General. This provision differs from MoCI 13/2019 as both Premium Call Services and Premium SMS were previously combined into one category, i.e., Content Services.

MoCI Regulation 1/2021 also governs that Premium Call Services Operators are required to implement several obligations as follows:

• provide Telecommunication Device and/ or Equipment that are required to organize Premium Call Services;
• enter into cooperation agreement with Telecommunication Service Operators that provides Basic Telephony Services; and
• fulfill the Commitment of Premium Call Service Operators to maintain certain service capacities such as: (i) in the first year of operation to have minimum of equal to 1 (one) E1 or equal to 30 (thirty) Phone Connection Unit (Satuan Sambungan Telepon/SST) and (ii) in the second year and onwards to increase service capacity

Meanwhile Premium SMS Service Operators are required to implement the following obligations:

• provide Telecommunication Device and/or Equipment that are required to organize Content Services;
• guarantee that all of Independent Content Providers that contribute to Content Services Organization have complied with the relevant laws and regulations;
• enter into cooperation agreements, in the event that the Premium SMS-Content Service Operators are distributing Content from Foreign Independent Content Providers;
• enter into cooperation agreements with Telecommunication Service Operators that provide Basic Telephony Services; and
• fulfill Commitment of Premium SMS-Content Service Operators concerning cooperation agreements with Independent Content Providers as follows: (i) in the first year of operation to at least conclude 2 (two) cooperation agreements; and (ii) in the second year of operation and onwards the operators are required to conclude more cooperation agreements to ensure that by the end of the fifth year they have concluded minimum 7 (seven) cooperation agreements in total.

Further, the MoCI Regulation 1/2021 also added new obligations that must be fulfilled by operators of telephony internet service for public interest (“ITKP Service Operators”) on the prevention and termination of fraud and/or masking and to also manage fraud complaints. This regulation also provides an opportunity for ITKP Service Operators to distribute internet-protocol-based incoming calls from overseas by fulfilling several obligations, such as to guarantee that their global partners are legitimate call-transmitters, have the abilitye to track calls, and have full responsibility over incoming calls from overseas. ITKP Service Operators that provide such services must also submit a letter which states that they have fulfilled all of their obligations set out in this regulation and a report on their global partners list to the Director-General.

MoCI Regulation 1/2021 also stipulates that MoCI, through the Director-General, is now authorized to monitor and evaluate the service quality and/ or products offered by telecommunication service operators. Based on this provision, Telecommunication Service Operators are obliged to provide access by connecting their telecommunications service organization equipment to monitoring systems established by MoCI. The result of such monitoring and evaluation will be announced to the public with due regard to the overall stability of the telecommunication industry.

MoCI Regulation 1/2021 applies to Telecommunication Service Operators that have obtained Telecommunication Service Operator Permits issued prior to the enactment of MoCI Regulation 1/2021 and therefore must comply to the provisions set forth under this regulation no later than 31 December 2021. SPA/MAD/HES