Decree No.KM.352004” provides that only local fixed network operators holding licenses issued by the MoC
may offer limited mobility wireless or fixed wireless access services. In addition, MoC Decree No.352004
states that each limited mobility wireless access operator must provide basic telephone services. Under an automated
migration feature, customers are able to make and receive calls on their fixed limited mobility wireless access phones
using a different number with a different area code.
8. Cellular
Cellular telephone service is provided in Indonesia on the radio frequency spectrum of 1.8 GHz DCS technology,
2.1 GHz UMTS technology and 900 MHz GSM and UMTS technology. The MoCI regulates the use and
allocation of the radio frequency spectrum for mobile cellular networks. Telkomsel has obtained frequency
allocation for cellular services on the 900 MHz, 1.8 GHz and 2.1 GHz frequency bands. For the allocation of radio
frequency spectrum 2.1 GHz, in 2006 the government allocates a tender process for the allocation of 5 MHz,
whereas for the allocation of additional radio spectrum allocated through an evaluation mechanism in 2009 and
selection in 2013 where each is the addition of 5 MHz. The allocation of bandwidth in the 2.1 GHz frequency
spectrum is regulated by:
MoCI Decree No.19KEPM.KOMINFO22006 dated February 14, 2006 regarding the Determination of
Winner of IMT-2000 Mobile Cellular Operator Selection at 2.1 GHz Radio Frequency Band.
MoCI Decree No.268KEPM.KOMINFO92009 regarding the Determination of Additional Allocation
of Radio Frequency Bandwidth Blocks, Tariffs, and Payment Scheme Radio Frequency Spectrum Right
of Usage Fees for IMT-2000 Moble Cellular Operators at 2.1 GHz Radio Frequency Band.
MoCI Decree No.191 Year 2013 regarding the Determination of PT Telekomunikasi Selular as Winner
in the Selection of Users of Additional Frequency Bandwidth at 2.1 GHz Radio Frequency Band for
IMT-2000 Moble Cellular Operators.
9. Interconnection
The Telecommunications Law expressly prohibits monopolistic and unfair business practices and requires
network providers to allow users to access other users or obtain services from other networks by paying
interconnection fees agreed upon by each network operator. Government Regulation No.522000 dated
July 11, 2000 regarding Telecommunications Operations provides that interconnection charges between two or
more network operators must be transparent, mutually agreed upon and fair.
On February 8, 2006, the MoCI issued Regulation No.8 PERM.KOMINFO022006 on Interconnection “MoCI
Regulation No.82006”, mandated a cost-based interconnection tariff scheme for all network and services
operators replacing the previous revenue-sharing scheme. Under the new scheme, interconnection charges are
determined by the network operator on which a call terminates based on a long-run incremental cost formula.
MoCI Regulation No.82006 requires operators to submit to the ITRA annual RIO proposals containing proposed
interconnection tariffs for the coming year. Operators are required to use the cost-based methodology in
preparing RIO proposals, and the ITRA and MoCI are required to use the same methodology in evaluating the
RIO proposals and approving interconnection tariffs.
Pursuant to MoCI Regulation No.82006 and ITRA Letter No.246BRTIVIII2007 dated August 6, 2007, we
submitted a RIO proposal to the ITRA in October 2007, which covered adjustments for operational, configuration,
technical and service offerings. In December 2007, we and all other network operators signed new interconnection
agreements that superseded previous interconnection agreements between us and other network operators
which also amended all interconnection agreements signed in December 2006.
On February 5, 2008, the ITRA required that we and other operators begin implementing the cost-based
interconnection tariff regime. On April 11, 2008, pursuant to Directorate General of Post and Telecommunication
“DGPT” Decree No.2052008, the ITRA and the MoCI approved RIO proposals from all operators to replace
previous interconnection agreements. The RIO approved in 2008 was effective until July 29, 2011 when new
interconnection charges were implemented as stipulated in ITRA Letter No.227BRTIXII2010 dated December
31, 2010 regarding the Implementation of Interconnection Charges in 2011. This is the result of interconnection
charges recalculation conducted in 2010 by MoCI that was agreed on by all operators and outlined in a
Memorandum of Understanding. The results of this interconnection charges reform caused a slight decrease
in interconnection costs.
On December 12, 2011, the ITRA changed the SMS interconnection fee basis from a “Sender Keep All” basis
to a cost basis interconnection fee calculation which
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ORMANCE HIGHLIGHT
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PREF A
GENERAL INF
ORMA TION OF
TELK OM INDONE
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MANA GEMENT’S DISCUSSION
AND ANAL Y
SIS
CORPORA TE GO
VERNANCE
SOCIAL AND ENVIRONMENT
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RE SPONSIBILITY
APPENDICE S
required certain amendments to RIOs agreed upon in 2011. MoCI Regulation No.82006 stipulates that the RIO
of telecommunications network operators generating operating revenue that is equal to or more than 25 of
the combined revenues of all telecommunication operators that serve the same respective segment, must obtain
ITRA’s approval, necessitating changes in our and Telkomsel’s RIOs which were approved on June 20, 2012.
Until this report is published, no recalculation of interconnection fees for 2012 had been done as doing
such should have been preceded by an evaluation on interconnection charges in 2011.
10. VoIP
In January 2007, the Government implemented new interconnection regulations and a five-digit access code
system for VoIP services pursuant to MoCI Decree No.06PM.KOMINFO52005. Under the Decree, the
prefix for VoIP, which was originally 01X, was changed to 010XY. On April 27, 2011, the MoCI issued Regulation
No.14PERM.KOMINFO042011, as partly revoked by MoCI Regulation No. 11 of 2014, which imposed quality
control standards in relation to VoIP services, which became effective three months thereafter, to which we
and other operators must adhere the regulation.
11. IPTV
Several provisions in the MoCI Regulation No.11PERM. KOMINFO072010 “MoCI Regulation No.112010”
regarding the Implementation of Internet Protocol Television IPTV Service has been amended by Regulation
No.152014 regarding the Implementation of Internet Protocol Television IPTV Service that became the legal
basis for the IPTV licensing and regulates the provision of IPTV services, including the rights and obligations of
IPTV providers, technical standards, foreign ownership requirements and the use of domestic independent
content providers.
MoCI Regulation No.112010 recognizes IPTV as a convergence of telecommunications, broadcasting,
multimedia and electronic transactions and provides that only a consortium comprising at least two Indonesian
entities may be licensed as an IPTV provider. Referring to MOCI Regulation No.152014, the licenses that we
needed, among others: a Local Fixed Network License, Mobile Network or Fixed Closed Network License; b
Operating Internet Access ISP License; and c Broadcasting Operation of Subscription Television
Broadcasting Services Institution License. Such a consortium may only provide IPTV services in the area
covered by all three required licenses. This was in line with abolition of the provisions of the Implementation
of Broadcasting Operation of Subscription Television Broadcasting Services Institution via cable, become
Broadcasting Operation of Subscription Television Broadcasting Services Institution.
In the Government Regulation No.522005 regarding the Broadcasting Implementation of Broadcasting
Subscription Institute LPB mentioned that the broadcasting could be conducted via satellite, cable and
terrestrial. Broadcasting via satellite could reach nationwide, while cable and terrestrial has a range of a
particular region. LPB licenses of broadcasting via satellite owned by PT Indonusa Telkomvision became our legal
basis became our legal basis to enforce IPTV services nationally.
12. Satellite
Our international satellite business is highly regulated. In addition to being subject to domestic licensing
requirements and regulation for the use of orbital slots and radio frequencies, our satellite operations also been
the subject of Radio Communications Agency of the International Telecommunication Union.
Furthermore, MoCI Regulation No.372006 dated December 6, 2006 requires foreign satellite operators
to obtain a landing right license to operate in Indonesia which requires i foreign satellite operators to coordinate
with domestic satellite operators, including us, to ensure that no Indonesian satellite and terrestrial systems will
be disrupted by their operation,and ii the country of origin of the foreign satellite operators must also give
permission to the Indonesian satellite operators to operate in that country.
13. Consumer Protection
Under the Telecommunications Law, each network provider is required to protect consumer rights in relation
to, among others, quality of services, tariffs and compensation. Customers injured or damaged by negligent
operations may file claims against negligent providers. Telecommunications consumer protection regulations
provide service standards for telecommunication operators.
14.USO
All telecommunications operators, whether network or service providers, are bound by a USO regulation that
requires them to contribute to providing telecommunication facilities and infrastructure in the interest of opening
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