TELECOMMUNICATION SERVICE OPERATION BUSINESS FIELD LICENSING

Telecommunication services is a business sector that has an important role, because it is necessary to support the sustainability of various other business fields. Based on these considerations, the Government, in this case the Minister of Communication and Information Technology (Kominfo), strives to realize efficiency and effectiveness as well as ease of doing business in the telecommunications sector by issuing Regulation of the Minister of Communication and Informatics Number 13 of 2019 concerning the Operation of Telecommunications Services (Permenkominfo 13/2019).

Permenkominfo 13/2019 provides that the Operation of Telecommunications Services is the activity of providing services for Telecommunications and which enables the operation of Telecommunications. In this case, the Telecommunication Network Provider can be either a state-owned company, regional-owned business entity, private business entity, or cooperative that has obtained a Telecommunication Network Operation License.

It should be noted, there are several requirements to obtain a Telecommunication Service Operation Permit and are as follows:

1. Company Establishment Deed
2. Changes to the latest Company Deed;
3. Ratification of the Company Establishment Deed (Kemenkumham);
4. Ratification/Acceptance of Company Deed Amendment Letter (Kemenkumham);
5. RPTKA (Plan for the Use of Foreign Workers);
6. IMTA (Permit to Employ Foreign Workers);
7. KITAS/KITAP (Temporary/Permanent Stay Permit Card);
8. Copy of Taxpayer Identification Number (NPWP);
9. Copy of Trading Business Permit (SIUP) or Permanent Business Permit (IUT);
10. Company Domicile Letter;
11. Statement of No Taxes Payable;
12. Statement of Fund Ownership from the Bank;
13. Copy of Evidence of Content Provider Service Provider Registration;
14. Application Form;
15. Form Attachments (Technical Aspects);
16. Attachment Form (Financial Aspect);
17. Form Attachment (Marketing Aspect);
18. Application Letter for Determination of Short Code for Multimedia Service Provider Content Provider Services;
19. Statement Letter;
20. Statement/Report on the Composition of Share Ownership;
21. Statement of not changing the Shareholding Composition of Principle License;
22. Statement of not changing the Share Ownership Composition after obtaining an Operating License before fulfilling the 50% commitment;
23. Statement of Affiliation Relations (at the level of Managing Director);
24. Integrity Pact;

To obtain a Telecommunication Service Operation License, a Telecommunication Service Provider is required to obtain a Telecommunication Service Operation License from the Minister of Communication and Informatics. The application for the Telecommunication Service Operation License must be submitted through the Online Single Submission (“OSS”). After applying for a license through OSS, the intended Licensee must carry out an Operation Acceptance Test, namely a technical and operational system test, which is carried out independently by the intended Licensee in order to fulfill the Commitment Statement of the Telecommunication Service Operation License.

If necessary, the Operational Acceptance Test may be carried out by means of a sampling method carried out by the business and the Ministry of Communication and Information Technology based on the Applicant’s request. Submission of an independent assessment of the Operational Acceptability Test and application for a sampling by the business is carried out no later than 15 (fifteen) working days before the end of the period for fulfillment of the commitment statement. Furthermore, the Ministry of Communication and Information Technology will conduct field verification of the Operational Acceptance Test conducted by business and the Directorate General of Post and Information Technology Administration (Directorate General of Post and Information Technology) will issue an Operation Acceptable Certificate for applicants who meet the requirements.

If the said field verification test indicates a mismatch between the parameters and procedures for the Operation Acceptability Test and the requirements, administrative sanctions may be imposed on the business. FDH/KBA/HES