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Table of Content
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
The Telecommunications Law organized telecommunication services into following three categories: i provision of telecommunication networks, ii provision of telecommunication services, and iii provision of special telecommunications
services. Licenses issued by MoCI are required for each category of telecommunications services. MoCI Regulation No.12010 and MoC
Decree No.KM.212001 dated May 31, 2001 regarding the Operation of Telecommunications Services, as last amended by MoCI Regulation No.82015 regarding the Fourth Amendment of Decree of the Minister of Communication No.KM.212001 regarding
the Provision of Telecommunications Service, are the principal implementing regulations governing licensing. MoCI Regulation No.12010 classified network operations into fixed and mobile networks. MoC Decree No.KM.212001
categorized the provision of services into basic telephony services, value-added telephony services, and multimedia services.
4. Introduction of Competition in the Indonesian Telecommunications Industry
In 1995, we were granted a monopoly to provide local fixed line telecommunications services until December 31, 2010, and DLD services until December 31, 2005. Indosat and Satelindo which subsequently merged with Indosat were granted a duopoly for
provision of basic international telecommunications services until 2004. As a consequence of the Telecommunications Law, the Government terminated our exclusive rights to provide domestic fixed
line telephone and DLD services and Indosat’s and Satelindo’s duopoly rights to provide basic international telephone services. Instead, the Government adopted a duopoly policy to create competition between Indosat and us as comprehensive service and
network providers.
5. DLD Services
To liberalize DLD services, the Government amended the National Telecommunications Technical Plan pursuant to MoCI Decree No.6PM.KOMINFO52005 dated May 17, 2005 “MoCI Decree No.62005” to assign each provider of DLD services a three-
digit access code that would permit their customers to select an alternative DLD services provider by dialing the three-digit access number. MoCI Decree No.62005 did not provide for immediate implementation of the three-digit system for DLD calls, but as
the first DLD service provider, we were required to gradually open our network to the three-digit access codes in all coded areas throughout Indonesia by April 1, 2010. We were assigned the “017” DLD access code, while Indosat was assigned “011”. The
MoCI there after amended the National Telecommunications Plan as provided in MoCI Decree No.43PM.KOMINFO122007 dated December 3, 2007, “MoCI Decree No.432007”, which delayed the deadline for the implementation of three digit access
code for DLD calls throughout all the area code in Indonesia until September 27, 2011.
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Table of Content Pursuant to MoCI Decree No.432007, we opened our network to the “01X” three-digit DLD access service in Balikpapan by
April 3, 2008. Since that date, our customers are able to make DLD calls from Balikpapan by first dialing Indosat’s “011”. As stipulated in MoCI Regulation No.432007, we have provided a nation-wide network for three-digit access code for fixed and
fixed wireless DLD with “01X” that can be used by Indosat or other licensed operator starting September 27, 2011. To date, no other licensed operators have submitted a request to us to connect their networks and enable DLD access.
6. IDD Services
