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What’s Next for Social Media in Indonesia?

How to make the most of Indonesia’s new Digital Platform law.

In late 2019, the Indonesian government decided to establish the nation’s new Digital Platform Law (PP PSTE no. 71/2019 on the Government Regulation on the Implementation of Electronic and Transaction System). The law, which revised the previous law (PP PSTE no. 82/2012), imposed a number of obligations on electronic system companies, not to mention social media companies. It requires social media companies to control the circulation of information on their platform, as well as protecting user data. However, merely placing obligations on social media companies will not be enough. The law needs follow-up in a few key areas.

First, the government and social media companies must establish a shared understanding of what counts as “restricted content.” In article 5, the Digital Platform Law orders social media companies to ensure that their platforms do not contain or accommodate the spread of restricted content. However, social media companies don’t always adhere to this policy. This is because both parties understand the term “restricted content” differently.

As mentioned in article 45 of the UU no. 19/2016 (the law that revises the Electronic Information and Transaction Law) the Indonesian government uses the term “restricted content” (“konten terlarang”). The term encompasses gambling, violation of moral code, blasphemy and/or defamation, extortion and/or threat, and hate-speech and false news. This definition carries a heavy political accent for two reasons: first, because the term tends to connote what the Indonesian government perceives as a threat, and second because it hands the Indonesian government the legal foundation to actually control the perceived threat and order its removal.

This definition is distinct from social media companies’ definition of restricted content. Social media companies like Facebook and Twitter don’t talk about restricted content but “harmful content” (“konten berbahaya”). They put harmful content, generally, into two categories: content that should be removed and content that should only be limited. The first category usually applies to content deemed to violate the companies’ policies, such as graphic content, bullying, violent content, adult nudity, etc. In this case, social media companies and the Indonesian government are in agreement.

However, the second category is different. Social media companies define the second category of “harmful content” as content that is not violating company policy yet impedes users from receiving authentic information. One of the major instances is false news (disinformation). Facebook argues that disinformation should only be reduced, not removed, due to the vague interpretation of what constitutes disinformation versus opinion. Twitter seconds this, arguing that disinformation should not be taken down since it does not harm the principle of democracy in the sense that it does not suppress voter turnout. While social media companies desire to reduce this type of “harmful content,” the Indonesian government demands its removal.

With these differences, social media companies are unlikely to comply with the Indonesian government’s order since they perceive the risk posed by each type of restricted content differently. To solve this problem, the Indonesian government, social media companies, and social media users need to have further discussion defining and responding to restricted content. The approved definition and response should provide protection for vulnerable communities.

Second, Indonesia’s government should encourage social media users to be more proactive. Indonesia’s current reporting mechanism suggests that the Indonesian government will proactively restrain content found to violate the new law. Although no objection has been raised to this authority, this doesn’t seem a very sound model for the future of content governance in Indonesia.

Of course, there are some interrelated issues that demand the proactive involvement of the government. Content that promotes terrorism, for instance, needs social media companies and the government to collaborate in exchanging information regarding terrorist organizations. However, the response should differ in other cases, such as disinformation. As previously argued, opinion and satire are often misinterpreted as disinformation. In spite of the Indonesian government’s duty to prevent potential unrest caused by deceptive information, its impartiality toward any content that does not uphold its agenda is uncertain. Therefore, the main actors in combating disinformation should not be the government but instead the users — both individuals and communities.

The Indonesian government should start encouraging individuals and communities to bear the duty to constrain the spread of disinformation on social media platforms by actively reporting content deemed to be violating the social media content policy. Social media companies should also carry out actions with similar goals. Aside from that, it is also important for social media companies to provide and promote an easily viewed and understood in-platform reporting mechanism. Social media companies have to make sure that content that is being reported by individuals and communities is acknowledged with a real response, without the company having to be pressured by the government.

This article originally posted by The Diplomat.

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk. You should contact a lawyer in your jurisdiction if you require legal advice.


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No permits required by foreigners in start-ups

The omnibus bill on job creation would scrap requirements for foreign workers in start-ups to obtain written permits, a move seen by businesses as an effort to help bridge the country’s skills gap.

The sweeping bill states that foreign workers must get written permits except for members of boards of directors and commissioners, diplomatic and consular staff, those working at start-ups, in professional training, on business visits, doing research for a short period or doing machine maintenance for production in emergency situations.

A presidential regulation would be issued to regulate certain positions and service periods to be fulfilled by the foreign workers.

Meanwhile, the current Labor Law stipulates that only diplomatic and consular staff are exempted from getting the written permits.

“It’s OK to hire foreign workers,” Indonesia E-Commerce Association (idEA) chairman Ignatius Untung told The Jakarta Post on Wednesday. “But instead of exempting them from acquiring a permit, the government can make the permit application easier.”

The government initiated the bill to cut regulatory red tape and ease business processes in the hope to attract more investment to jack up the country’s sluggish economic growth. If passed into law, the bill would amend more than 1,000 articles in some 80 prevailing laws.

Ignatius said easing foreign worker restrictions for the country’s start-ups could help Indonesia close its digital talent gap and encourage the transfer of knowledge. However, a permit was still needed to prevent foreign tech-savvy workers from flooding into the country and hampering the growth of local talent.

Indonesia’s digital economy is expected to reach US$130 billion in market value by 2025, triple the $40 billion valuation of 2019, with the e-commerce and ride-hailing sectors driving most of the growth, according to the 2019 e-Conomy SEA study conducted by United States technology giant Google, Singaporean holding company Temasek and management consulting firm Bain & Company.

The country itself has four unicorns, start-ups valued at more than $1 billion, out of 11 in Southeast Asia, the study revealed.

According to startupranking.com, a website that collects worldwide start-up data based on registration, Indonesia has the most start-ups in Southeast Asia with 2,192 as of February.

The government, Ignatius said, could partner with associations in determining what type of skills are still needed in the country and in issuing recommendations.

Ignatius added that Indonesia should let international universities open their branches in the country to educate future local data scientists and artificial intelligence (AI) engineers, among other professions.

Ease of hiring foreign labor in the World Economic Forum's Global Competitiveness Report 2019.

Ease of hiring foreign labor in the World Economic Forum’s Global Competitiveness Report 2019. (World Economic Forum/Global Competitiveness Report 2019)

“Instead of waiting for the Indonesian diaspora to come home, we should bring the lessons here,” Ignatius said. “That way, we get the skills and we can retain the human resources too.”

The McKinsey Global Institute and the World Bank projected Indonesia would see a shortage of 9 million skilled and semiskilled workers in the digital sector between 2015 and 2030.

According to a McKinsey & Company report titled Automation and the Future of Work in Indonesia, there will be 10 million jobs in new occupations that do not exist today by 2030. A projected 27 million to 40 million new jobs will be created in the same period if Indonesians learn new skills, versus the 23 million jobs that could be displaced by automation.

“The challenge is how to reskill at least 23 million people whose jobs are being replaced. Not to mention that in 2030, there will be 25 million new people entering the workforce,” McKinsey Indonesia managing partner Philia Wibowo said in an interview with the Post in September.

Indonesian Chamber of Commerce and Industry (Kadin) vice chairwoman for international relations Shinta Kamdani expressed confidence that Indonesian start-ups did not solely rely on foreign talent in running their businesses, despite acknowledging that the country still needed assistance in filling the digital talent gap.

“All of Indonesia’s unicorns are local start-ups. So, there is no need to have negative assumptions about foreign workers” Shinta said. “What’s important is that start-ups can develop, and they can bring benefits to the country.”

She went on to say that partnerships between local start-ups and international entities often happened. The start-ups, she added, should not limit their collaboration only to other local organizations or businesses.

This article originally posted by Jakarta Post.


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Ceklis Legal Awal Tahun untuk UMKM

Seringkali, pengusaha melakukan pendekatan reaktif dalam meninjau aspek hukum bisnis mereka.

Namun hal itu dapat menyebabkan risiko kewajiban yang dapat dihindari, missed opportunities, dan skenario pajak yang kurang ideal. Ketika pemilik bisnis mengadopsi pola pikir “jangan perbaiki kecuali rusak”, mereka dapat saja melewatkan peluang dalam meningkatkan bisnis.

Di sisi lain, pengusaha yang melakukan checkup legal awal tahun mendapatkan apa yang mereka butuhkan untuk membuat keputusan berdasarkan informasi tentang jenis badan usaha mereka, pemilihan pajak, dan aspek bisnis lainnya. Dalam tulisan ini, kami akan membagikan beberapa ceklis atau checkup legal yang layak dilihat — dan dapat dirundingkan dengan pengacara Anda — untuk memastikan bisnis Anda tetap berada di jalur yang paling sukses.

  1. Apakah bentuk badan hukum bisnis Anda masih menjadi pilihan yang tepat?

Banyak bisnis dimulai sebagai satu bentuk entitas, dan ketika mereka tumbuh menjadi lebih besar dan kompleks, mereka menemukan bentuk entitas lainnya yang berbeda yang akan lebih sesuai dengan kebutuhan mereka.

Misalnya, seringkali bisnis satu orang dimulai sebagai kepemilikan tunggal/perseorangan untuk menjaga administrasi tetap sederhana dan tanggung jawab kepatuhan minimal, tetapi ketika mereka mempekerjakan karyawan, memperluas layanan, dan mendapatkan lebih banyak pelanggan, mereka memilih untuk membentuk CV atau PT atau bergabung untuk mendapatkan perlindungan kewajiban, fleksibilitas pajak, dan lebih banyak peluang pendanaan (misalnya, menarik investor atau mampu menjual saham).

  1. Apakah rasional untuk memperluas bisnis Anda ke daerah/kota lain?

Saat bisnis Anda telah terbukti di target pasar saat ini pastinya terlintas keinginan untuk melebarkan sayap bisnis Anda. Caranya dapat dengan menambahkan produk atau membuka layanan (kantor cabang) Anda ke daerah atau kota lain (atau luar negeri).

Adapun sebelum Anda melakukan perluasan bisnis, sangat penting untuk meneliti daerah/kota mana yang dapat menawarkan bisnis Anda peluang terbaik. Penting juga untuk mempertimbangkan apakah dengan terpenuhinya syarat dari bisnis Anda sekarang (pusat) oleh entitas baru atau asing di daerah/kota yang baru (cabang) akan menambah keuntungan Anda atau hanya memberi profit margin yang tipis?

  1. Apakah sekarang ini waktu yang tepat untuk memperluas portofolio produk dan layanan bisnis Anda?

Jika penambahan lini bisnis baru sudah ada dalam biz-wish Anda, tetapi iklim bisnis, regulasi dan peraturan atau faktor-faktor lain menghalangi Anda mengambil risiko, saatnya menilai kembali situasi bisnis Anda. Apabila hambatan di depan pintu masuk telah hilang, sekarang mungkin saatnya untuk mengkabulkan visi Anda.

  1. Apakah Anda memerlukan banyak tangan untuk menyelesaikan pekerjaan dalam bisnis Anda?

Jujurlah dalam menilai situasi kepegawaian Anda. Jika Anda dan karyawan atau kontraktor yang ada terlalu banyak bekerja dan kewalahan, mungkin Anda perlu mempertimbangkan penambahan staf atau freelancer untuk menyelesaikannya. Jika sumber daya manusia yang tidak memadai menyebabkan Anda kehilangan peluang, mencegah Anda dari memberikan layanan dan dukungan pelanggan yang baik, atau sebaliknya mengurangi kesuksesan bisnis Anda, maka segera atasi lebih cepat sebelum masalah membesar. Demikian juga, evaluasi tim Anda dan identifikasi di mana pengembangan profesional diperlukan untuk mempercepat kinerja yang kurang bersemangat.

Adapun ini adalah kali pertama Anda merekrut karyawan, pastikan Anda memahami undang-undang tentang ketenagakerjaan, peraturan lamaran kerja, wawancara, pengujian narkoba, dll.

  1. Apakah Anda sudah memenuhi tanggung jawab business compliance Anda?

Jalankan bisnis Anda disertai dengan kewajiban hukum yang berkelanjutan. Tanggung jawab khusus dan kapan kewajiban tersebut perlu diurus, akan berbeda-beda sesuai dengan di mana perusahaan berada dan struktur bisnisnya.

Di Indonesia, selain wajib melaporkan pajak bulanan dan tahunan tepat waktu, perusahaan juga wajib menyerahkan Laporan Kegiatan Penanaman Modal (LKPM) atas progress proyek investasi yang sedang berjalan ataupun yang sudah komersil secara bertahap kepada masing-masing Dinas Penanaman Modal daerah bisnis Anda beroperasi.

Adapun beberapa perusahaan mengadakan pertemuan tahunan untuk membahas jika terjadi perubahan terkait nama perusahaan, alamat bisnis, keanggotaan dewan direksi, format manajemen, jenis saham yang diterbitkan, atau modifikasi signifikan lainnya, di mana sebuah perusahaan harus melaporkannya kepada negara.

Juga, banyak lisensi dan izin (seperti izin bisnis lokal, izin pajak reklame, izin OJK, lisensi profesional, dll.) yang harus diperpanjang. Awal tahun adalah waktu yang ideal untuk memverifikasi situasi Anda yang seharusnya dilakukan pada tahun lalu dan siap untuk apa pun yang harus Anda lakukan dalam waktu dekat untuk tetap patuh dan dalam performa bisnis yang baik sepanjang tahun 2020.

Di mana meminta saran

Saat Anda mengerjakan ceklis ini, pertimbangkan untuk meminta saran atau arahan dari pengacara dan akuntan untuk membantu memastikan Anda membuat keputusan terbaik bagi perusahaan. Anda perlu melakukan apa yang harus Anda lakukan agar perusahaan/bisnis Anda tetap utuh secara hukum. Semakin banyak wawasan dan informasi dari ahli profesional yang Anda miliki, semakin baik posisi Anda untuk memajukan bisnis.

FMB & Partners Law Firm dapat membantu Anda dalam melakukan daftar periksa due diligence yang komprehensif pun membantu keperluan hukum serta legalitas mergers and acquisition bisnis Anda. Contact us for info and other legal practice at +62 21 5082 0033 or mail to mey@fmbpartner.com

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2020, Fintech Company is restricted?

How do you let your Fintech Company pass?

Fintech business in Indonesia until the end of 2019 is increasingly rising. As this business grows, naturally it is followed by government regulations so that they can take care of licensing at the Financial Services Authority (OJK).

But entering 2020, OJK will examine the possibility of restrictions on fintech companies, especially fintech financing (P2P lending) it is said because OJK wants the development of the number of fintech to be balanced with the number of customers.

Until the regulation is decided by the OJK, up to now one of the requirements for obtaining a registered status to obtain a permit from OJK is, of course, the financial statements owned by the fintech company.

Furthermore, has this matter become a consideration for management, how has the reporting system been implemented so far, has it covered all the prerequisites needed for licensing at the OJK?

The OJK will certainly ask about the company’s vision and mission, how to solve technology-related problems, to the existing economic problems, including how financial reporting systems owned by Fintech company. This prevents the existence of Fintech companies that have less capital which can be risky for future customers.

Are your financial statements ready? Have you conducted audits in companies related to the current financial system?


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Inilah 6 Fokus Utama BKPM dalam Genjot Investasi

Badan Koordinasi Penanaman Modal (BKPM) akan fokus ke enam indikator untuk mendorong peningkatan investasi masuk ke Indonesia.

Hal ini diungkapkan Imam Soejoedi, Direktur Promosi Sektoral saat menjadi narasumber di depan sekitar 100 pengusaha di Busan Business Forum.

Enam indikator yang menjadi fokus BKPM di antaranya meningkatkan peringkat kemudahan berusaha, mengeksekusi investasi besar dan strategis, mendorong kemitraan investor asing dengan pengusaha lokal, penyebaran investasi yang berkualitas dan memperbaiki strategi promosi investasi terfokus pada sektor dan negara serta meningkatkan investasi domestik khususnya pengusaha kecil dan menengah.

Imam mengatakan, sosialisasi tersebut masih merupakan rangkaian kegiatan Presiden Jokowi usai menghadiri ASEAN-ROK Commemorative Summit di Busan.

Sebelumnya, BKPM juga menggelar kegiatan Working Lunch antara Presiden Jokowi dengan 10 CEO korporasi kakap Korea Selatan. Kegiatan ini berhasil meyakinkan Hyundai Motor Group berinvestasi ke Indonesia. Setelah itu, BKPM juga didaulat menjadi narasumber di depan sekitar 100 pengusaha Korea Selatan dan anggota asosiasi usaha di Business Forum yang diselenggarakan oleh Kementerian Perdagangan.

Imam menambahkan, kepada 100 pengusaha itu, pihaknya meneruskan arahan Presiden di Working Lunch lalu kepada Kepala BKPM Bahlil Lahadalia untuk menjadikan BKPM sebagai lembaga pintu utama bagi perusahaan-perusahaan dan investor Korea Selatan yang berminat melakukan investasi di Indonesia.

“Tak hanya itu BKPM wajib melakukan pendampingan bagi investor-investor yang menemui kendala dalam merealisasikan investasinya,” katanya melalui keterangan resmi, Kamis (28/11/2019).

Sebelumnya, Kepala BKPM menyampaikan, lembaganya menetapkan visi untuk tidak saja mengejar investasi asing. Namun juga akan memperkuat investasi dari investor domestik yang diharapkan semakin mengimbangi investasi asing. Termasuk mengembangkan kemitraan dan kerjasama dengan investor asing.

“Pengusaha lokal memiliki jaringan yang dapat dimanfaatkan oleh para investor sehingga realisasi investasi menjadi lebih mudah dan cepat. Sebaliknya pengusaha lokal juga dapat meningkatkan kapasitasnya dan pada akhirnya akan tercipta situasi win-win yang akan menguntungkan bagi semua pihak,” papar Imam.

Imam mengatakan pihaknya juga mendorong percepatan realisasi investasi dan juga berkualitas. “Sebagaimana sesuai dengan skala prioritas presiden yakni bagaimana investasi itu mampu mengembangkan SDM, pengembangan infrastruktur yang berkualitas, mengurangi peraturan yang menghambat, penyederhanaan birokrasi serta transformasi ekonomi diterjemahkan,” tutup Imam.

Sumber: Bisnis.

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Mitigating the Risk of Economic Crimes

In Indonesia, there are many forms of economic crime like smuggling, tax evasion, drug trafficking, human trafficking, violation of copyrights, bank frauds, embezzlement, credit card fraud and fraud of certificates of bills of lading. Indonesia has criminalized money laundering but they are facing many difficulties in implementing the laws. There are laws controlling economic crime relating to banking, copyright, trade and service marks, and there is a provision in Law No. 15 of 2002 which criminalizes money laundering (amended by Law No. 25 of 2003).

Generally, the perception of the type and amount of economic crime which occurs in Indonesia accords with the reported instances of economic crime. The notable exceptions to this statement involve asset misappropriation and money laundering. Only 15.6% of companies in Indonesia perceive asset misappropriation as prevalent economic crime, compared to 31.9% of companies reporting incidents over the past two years. As to money laundering, the perceived risk of occurrence is 16.4% compared to reported incidents of 2.8%.

In general Indonesia companies have realized their exposure to economic crimes by taking some detection and prevention measures. 85.3% of these companies surveyed have more than 5 methods in place, as shown in figure 1.

Figure 1 Mitigating risk of Economic Crime

Methods

Figure.2 on the following page shows that almost half of the economic crime cases detected in Indonesia were initially identified by tipping-mechanisms, including whistle-blower systems, and tip-offs from internal and external sources.

Figure-2 Mitigating risk of Economic Crime

Indonesian companies are increasingly promoting whistle-blowing policies as an integral part of their risk management program. When this detection tool is correctly implemented, it has the strong potential of effectively uncovering fraud–increasingly replacing the chance element of anonymous tip-offs.

Another proven detection method is an internal audit, where detection occurs in 27% cases. There are several detection measures that appear to be effective globally but not been reported as being effective in Indonesia such as corporate security, audit committees, rotation of staff and electronic automated suspicious transaction report systems.


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