Telecommunications Regulators 6K AR TELKOM2014

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2. Telecommunications Regulators

In February 2005, the authority to regulate the telecommunications industry was transferred from the MoC to a newly-established Ministry, the MoCI. Pursuant to authorities assigned to him through Telecommunication Law, the Minister of Communication and Information sets policies, regulates, supervises and controls telecommunications industry in Indonesia. On October 28, 2010, MoCI engaged in certain organizational and administrative reforms that included transferring licensing and regulatory authority to two newly established general directorates, the Directorate General of Posts and Informatics Resources and Equipment “DGRE” and Directorate General of Post and Informatics Operations “DGPIO” pursuant to MoCI Regulation No.17PERM.KOMINFO102010 regarding the Organization and Administration of Ministry of Communication and Information. Following the reforms, certain adjustments were made through MoCI Regulation No.15PERM.KOMINFO062011 dated June 20, 2011 regarding title adjustments in a number of Decrees andor MoCI regulations that regulate Special Materials in Post and Telecommunications andor in Decrees of the Director General of Posts and Telecommunications, which transfer all substances related to the postal and telecommunications sectors to the DGPIO including licensing, numbering, interconnection, universal service obligation and business competition. Meanwhile, matters related to radio frequency spectrum and standardization of telecommunications equipments were transferred to the DGRE. Following the enactment of the Telecommunications Law, the MoC established an independent regulatory body as stipulated in MoC Decree No.KM.312003 dated July 11, 2003 regarding the Establishment of the ITRA which was later revoked by MoC Regulation No.KM.36PERM.KOMINFO102008 dated October 31, 2008 and amended by MoCI Regulation No.1PERM.KOMINFO022011 dated February 7, 2011 “MoCI Regulation No.362008”. Pursuant to MoCI Regulation No.362008, the ITRA was assigned the authority to regulate the Indonesian telecommunication industry, including the provision of telecommunication networks and services. The ITRA which is chaired by the Director General of Post and Informatics Operations and comprises of nine members, including six members of the public, and three members selected from Government institutions DGRE and Director of DGPIO and a government representative appointed by the Minister of Communication and Information.

3. Classification and Licensing of Telecommunications Providers