Indonesia develops law allowing digital platforms to pay media for content

Indonesia is preparing a legislation that will enable media outlets to accept fees from digital platforms or aggregators that distribute their material, the country’s Press Council announced on February 9.

According to Arif Zulkifli, a member of Indonesia’s Press Council, the new regulation is intended to level the playing field in terms of content provision and profit generation between media and internet companies.

The measure, presented two years ago, was inspired by similar laws in Germany and Australia, and a presidential rule is anticipated to be issued within a month.

In Indonesia, digital platforms include Facebook, Alphabet Inc’s Google, and a few local aggregators.

These platforms, according to Arif, gain from carrying material produced by media corporations, although “most media earn modest revenues.”

He stated, “There is no balance in this.”

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Under the new law, the Press Council will decide pricing structures and payment methods, as well as serve as a mediator in the case of a dispute.

In March of 2021, the News Media Bargaining Code went into force in Australia. According to a study by the U.S. Treasury Department, since then, internet companies have signed more than thirty contracts with media sites in exchange for material that produced clicks and advertising revenue.

According to the research, these partnerships have enabled news organizations to hire additional journalists and make other vital investments in their operations.

President Joko Widodo, speaking at an event honoring the Indonesian press on Thursday, underlined the urgent need for the new law, since 60% of the Southeast Asian nation’s advertising industry is dominated by foreign digital platforms.

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“Approximately 60% of advertising expenditures were absorbed by digital media, particularly overseas platforms. This is unfortunate,” he remarked.