The more people depend on the internet, the more efficacy and potential perceived from all things internet-based. Starting from digital entertainment to digital bureaucracy, everything is provided with internet. More recently, a part of the digital entertainment, namely Netflix and Spotify, receives a warm conversation in Indonesia. Both are an online streaming platforms in entertainment that seek to enter Indonesia. However, the two differ in luck, as Netflix’s permit is then nullified, while Spotify is welcomed.

What are Netflix and Spotify?

Netflix is a US-based global provider of streaming films and television series. As of April 2016, Netflix reported to have over 81 million subscribers worldwide, including more than 46 million in the US alone. Meanwhile, Spotify is a Swedish music streaming with more than 75 million active users, as of June 2015. Both are aiming Indonesian internet users market.

“Quick adjustment needs to be made in order to fully accommodate all interests and to ripe all the benefits this era has been offering, as the rise of digital revolution is highly inevitable; and we are moving towards an even more inteconnected digital society.”

Why was Netflix Nullified, whilst Spotify Accepted?

Commencing in January 7th 2016, Indonesians can enjoy Netflix legally. The monthly subscription fees started from Rp 109,000.00, 139,000.00 and 169,000.00. Netflix imposed a free service until February 7th , 2016 which was extended to March 11th , 2016. However, it turned out that Netflix was then ​​deemed to have violated several regulations in Indonesia, particularly the cinema and broadcasting regulations.[1]The government gave a deadline of one month for Netflix to fulfil obligations under Indonesian law. In order to keep operating in the country, Netflix had to comply with the regulations, or cooperate with local telecommunication companies.[2]Another option offered was for Netflix to be licensed as an organizer of the content provider. In addition, the contents streamed through Netflix were also disputed by the Film Censorship Board (LSF) due to the uncensored contents shown to the public. This was supported by the Ministry of Communications and Information Technology and the Indonesian Telematics Society. Following this, Netflix was then ​​blocked by Telkom as at January 27th 2016 from all of its broadband services, ranging from IndiHome, WiFi.id and Telkomsel’s cellular access.[3] Thus, customers subscribing to Netflix faced a situation where they could not access the Internet.

Meanwhile, Spotify officially entered Indonesia on March 30th 2016. It can be said that Spotify experienced smoother road to the present. This is because Spotify commenced cooperation with local telecommunication operator, Indosat Ooredo, showing their clear position of Spotify in Indonesia. Spotify also withstood the presumption where they make a clear address about the consumer services fees and tax collection while operating in the country.[4]

What’s next?

Actually, in accordance to UU No. 11 of 2008 on Information and Electronic Transactions, the ministry already gave permission to Netflix to operate and they have been listed as the organizer of an electronic system. Netflix, which is ​​an internet-based on demand television network, [5] felt there was no need for them to apply for a broadcasting license like cable television service providers in general. Netflix underlined the freedom consumers possess, whether they want to subscribe or not. On the contrary, Spotify complied with the requirements of the government of Indonesia. Thus, the remaining things to do for Netflix is ​​simply to adjust to the demands of nearly 200 local Governments and offer catalogs that fit within established legal and regulatory frameworks. Unfortunately, until now there is no news of Netflix regarding their continuity in Indonesia.

The raise of digital industry should reallybe taken into serious consideration, especially in the developing nations. On one hand, the industry has proven to bring significant economic prominence to the society in general, promising a fruitful economy in the future, further bringing together the aspiration of a digital society. However, since the industry is driven and developed by community, the government is somehow left out and lagged behind, keeping them out of touch with this industry. No wonder, technical issues and government related matters (for example, license and tax) become stumbling stone, as this industry is yet to be regulated. The same case is seen from the riot in Jakarta on app-based taxi services clash with conventional taxis. The case shows how tricky the regulation of digital operations is in general. Quick adjustment needs to be made in order to fully accommodate all interests and to ripe all the benefits this era has been offering, as the rise of digital revolution is highly inevitable; and we are moving towards an even more inteconnected digital society.

[1] O. Yusuf, ‘Pemerintah Indonesia Beri Waktu 1 Bulan Untuk Netflix’, Kompas, January 19 2016,

[2] H. N Fajrina, ‘Belum berizin, Haruskan Netflix Dihentikan di Indonesia’, CNN Indonesia, January 13 2016,

[3] G. N. Dolorosa and M. Ihsan, ‘Emiten Telekomunikasi: Kehadiran Netflix, Kegalauan Telkom’, Market, February 4 2016,

[4] D. Mahardy, ‘Spotify Dipuji Menkominfo, Netflix?’, Techno ID, April 6 2016,

[5] R. K. Nistanto, ‘Diblokir Telkom, Ini Kata Netflix’, Kompas,  January 28 2016,