Legal Updates for May 2016

New Rules on OTT Services in the Offing

On 29 April 2016, the Minister of Communications and Informatics launched a public consultation on a draft regulation on the provision of content and/or application services over the Internet (the “Draft Regulation”).  The Draft Regulation is a follow-up to Minister of Communications and Informatics Circular No. 3 of 2016 on the Provision of Content and/or Application Services over the Internet (Over the Top or “OTT” for short), which was issued on 31 March 2016.

New DNI Marks Step Forward, But Still More to be Done

As promised back in February, the Government has revised the Negative Investment List (Daftar Negatif Investasi / “DNI”) to liberalise the country’s foreign direct investment (“FDI”) rules. While the changes that have been made certainly amount to a degree of liberalisation, they by no means constitute a wholesale opening up of the Indonesian economy to FDI. One particular disappointment is the government’s failure to more significantly liberalise the pharmaceutical sector. The new DNI is incorporated in Presidential Regulation No. 44 of 2016, which entered into effect on 18 May 2016.