The plan to revise Indonesia's 2002 Broadcasting Law has been the subject of public debate as lawmakers seek to address regulatory gaps amid rapid advancements in media technology. This agenda will likely continue under the leadership of President Prabowo Subianto. While the industry urgently requires reform due to evolving technology and shifting audience behavior, some clauses in the proposed revision suggest that political stakeholders may be pushing for greater state control over content and media consumption. If approved, the revision will have a lasting impact on the media landscape for the foreseeable future.

The proposed revision sparked controversy in May, when members of the previous House of Representatives (2019-2024) attempted to fast-track the deliberation process before their term ended on Sept. 30. After addressing issues related to multiplexing and the analog switch-off in the Job Creation Law, parliament sought to expand the scope of the Broadcasting Law to cover the transmission of broadcast signals through various mediums, including terrestrial transmission, cable, satellite, internet, and other systems. This indicates that the revision aims to unify conventional and digital media under one regulatory framework.

One of the consequences, the proposed regulation aims to place Online Curated Content (OCC) streaming platforms such as Vidio, Vision+, Netflix, and Disney+ Hotstar and their content under strict oversight by the Indonesian Broadcasting Commission (KPI), requiring them to comply with the same regulations as traditional broadcasters such as television and radio. This comes at a time when the content industry is grappling with significant challenges, as international streaming services have been withdrawing from producing local content over the past year.

OCC streaming services operate on a "pull" model, whereas traditional television broadcasting follows a "push" model. This means that viewers, including Indonesian families, have significantly more control over the content they and their children access through OCC platforms compared to conventional TV where shows and program broadcast is fully controlled by each TV station. Additionally, the vast volume of online content on OCC services far exceeds that of traditional TV networks, which the Indonesian Broadcasting Commission (KPI) oversees around the clock. Consequently, these differences in service delivery and technology necessitate distinct regulatory approaches.

Digital content is already regulated under the 2008 Electronic Information and Transactions Law (UU ITE) and its implementing regulations, which grants the Communications and Digital Ministry the authority to monitor content distributed by OCC services. The law also gives the ministry the power to block access to illegal content on the internet and prohibits video service providers from making restricted content available. In addition, another mechanism already in place includes content identification (ID) systems and takedown notices, which allow platform operators to quickly identify and remove content that violates legal or regulatory guidelines. These tools help ensure that prohibited or harmful material is swiftly addressed, contributing to a safer and more compliant digital environment.

At international OCC platforms, these streamers implement their own content moderation system based on industry standards to ensure their content complies with national law and is sensitive to local concerns. This includes considerations for age-appropriate programming, language, cultural values, and respect for religious or political sensitivities, ensuring that content is suitable for specific audiences in each market. Consequently, in different markets, certain content may require stricter age classifications, while some may be withheld from release due to their sensitive nature. Leading OCC services offer PIN or password controls that help protect families and children according to the content age classification. There is a shared interest between these streaming platforms and consumers in ensuring that viewers are well-informed.

In comparison, we can learn from how Japan and South Korea navigate in regulating OCC services. As dominant players in the region, both countries consistently produce high-quality content that drives massive global subscriptions. Japan has a 75-year-old tradition of content self-regulation, which has helped make it a global powerhouse for cultural content, especially in the anime genre. In South Korea, the government recognizes the importance of K-content in driving the country's international soft power (the Hallyu wave), and the industry, including OCC platforms, benefits from pro-investment, light-touch policies that continue to drive growth in the audiovisual sector. These policies attract investment in content, which can be considered a high-value-added activity that significantly contributes to GDP, supports skilled, well-paid employment, and boosts the country's exports.

Although traditional broadcasting in Indonesia still benefits from greater economies of scale and a larger market, its revenue position is expected to be surpassed by OCC platforms by the end of this year, according to Statista. Currently, OCC services predominantly focus on general entertainment content. Interestingly, only local players such as Vidio and Vision+ are actively involved in live sports streaming. 

According to Media Partners Asia (MPA), total video content investment in Indonesia grew by 5% in 2023, reaching $919 million, driven by original content investments from OCC players, alongside a recovery in the film sector. Free-to-air (FTA) spending remained flat at $460 million. MPA forecasts that the market will grow at a compound annual growth rate (CAGR) of 3.6%, reaching $1 billion by 2028.  

This indicates that OCC is creating important opportunities for Indonesian video content creators; the difference in investment levels is notable because it shows that the FTA sector is over-regulated while the OCC sector with far less regulation is able to invest more. For this growth momentum to continue, streamers need to be confident that harmful policies like the extension of the broadcasting law will not happen. 

If we aim to foster innovation and growth in the emerging OCC services market, the most effective approach would be a light-touch regulatory framework that allows OCC platforms to self-regulate while addressing local concerns. Such a strategy would stimulate increased investment, generate new employment opportunities, and ultimately, this will make accessible a premium entertainment and education experience for audiences and their families

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Fauzan Zidni is a member of the board of advisors at the Association of Indonesian Film Producers.

The views expressed in this article are those of the authors.