Internet neutrality has been a debate on both online and offline. As a way to "free" the internet, Indonesia is one of which that is struggling to create policies to support the a healthy digital information transaction in the country.
Internet neutrality is all about treating all web contents equally. Since data flows through providers, internet neutrality asks them to treat them as they are, without favoring any services, or blocking any without "good" reasons.
Treating the internet's content equal is a challenge on its own. The government is trying to protect its national interests while at the same time aiming for the benefits of global innovation. Internet neutrality has been on debate where both the industry and the legislators are finding ways to benefit mutually.
But what's still missing here is the Indonesia in putting its position on net neutrality.
The Race To "Block"
Not long ago, U.S.-based Netflix that was having its international rollout, was blocked by Indonesia's state-owned telecommunication company Telkom. Indonesia was the first on the streaming video-on-demand list to expand, but it wasn't well greeted by the country's officials.
The government aims for foreign internet companies to form permanent business entities in Indonesia. By having permanent business in the country, their license in Indonesia can force them to pay local taxes. But the law has yet to do such a thing.
As for Neflix, Dian Rachmawan, Director of Telkom's consumer services, said that "as a state-owned enterprise, we need to set up an example and uphold Indonesia's authority in conducting businesses.”
Indonesia's Communications and Information Minister Rudiantara’s announcement came to no surprise. His decision came just about when Google struggles in Europe, and its controversial settlement over outstanding tax payments.
Ismail Cawidu, the tech ministry's spokesperson, confirmed that the proposal is currently only in its draft stages.
However, the government has chosen to take a distant stance on Telkom decision to block Netflix, calling it a "corporate privilege". Rudiantara said Telkom's move did not represent the government's stance despite Telkom's status as a state-owned enterprise.
"Other internet service providers are still allowing Netflix access. So, it is a pure corporate decision," Rudiantara said that time, adding that the requirement for Netflix to open a permanent representative office in Indonesia was subject to regulations.
The representatives of internet companies can't comment on the situation because "the rules aren't out yet."
What Telkom is really doing, is protecting its own business in the local market. As a state-owned telecommunication company, Telkom is one of the largest and the most influential. The company itself is trying to popularize its news services, including USeeTV that offers similar video-on-demand service like Netflix.
Furthermore, the company also fears that Netflix's popularity will put a high cost on data volumes that flow through its networks.
Telkom built the infrastructure, Netflix is like piggybacking on what Telkom has established, without having to pay any loyalties or tax.
While blocking Netflix is certainly a safe precaution for Telkom to secure its business, blocking services is seen as a clear violation of internet neutrality.
Alexander Rusli, CEO of Indosat, is one of whom that strictly opposes net neutrality. He represented other telecommunication providers, clearly stating that they have the power to limit what their consumers can consume. They have the authority to allow or limit any internet services such as YouTube, WhatsApp, Instagram, Facebook, Twitter, Google and others, and have the ability to ask payments or loyalty to allow them flow through their networks.
Related: Vimeo, Imgur and Reddit blocked in Indonesia
Another example of net neutrality violation was in India. The country was upset of Facebook's Free Basics (Internet.org). In its scheme, Facebook gives free internet access with zero data rates to a limited part of the web. But what Facebook really do is putting itself, and some others as a top priority, leaving the competitors as paid services. The initiative's preferential treatment of certain services is counterproductive to the ideals of a free internet because it puts those who aren't included at an unfair disadvantage.
This selective "blocking" is also to protect its business interest. But to providers, this is a clear violation to net neutrality. India then decided to block Free Basics.
Other Indonesia's major provider and mobile phone carrier XL Axiata also decided to end its partnership with Free Basics. XL had partnered with Facebook during Internet.org's research phase in Indonesia, but then decided to not continue the partnership once it was ready for its official launch. Free Basics then partnered with another carrier, Indosat. This move was a surprise.
According to Yessy D. Yosetya, the Chief Digital Services Officer at XL Axiata, there were two things that held XL back from partnering up with Mark Zuckerberg's Internet.org initiative. "First, this program is still controversial, one example is what it happening in India," he explained. "Our second concern is about the business model."
Yosetya goes on to explain that Facebook requires XL to apply zero-rating to the data transfer through Internet.org, as well as to carry the marketing costs. Zero-rating is a term applied to the practice of not charging the end customers for data transfers through certain apps or services. "So, it's us who bears it all."
Some other countries, like the Netherlands, Chile, Brazil, and the U.S., have, or are preparing, net neutrality laws.
Laws To Govern, Getting Way With It
At the present time, discussion about net neutrality is almost everywhere. But since there is no "powerful" law to govern it, mainstream discussion is somehow limited. This enables many companies, either private or state-owned, to get away with their schemes.
On December 2015, Google's co-founder Sergey Brin visited Indonesia to discuss Project Loon to expand the internet in Indonesia by using balloons that hover high above the horizon beaming internet connection. Indonesia that has an archipelago of tens of thousands of island is deemed to be difficult to connect. Brin's arrival to Indonesia was also said to bring campaign for net neutrality in the country.
If there is one internet company that sees internet neutrality a must, Google could be the first on the list. The search giant thrives on its influence on the web, and net neutrality is what brought it to its current popular state.
Further reading: Net Neutrality: Where Users are Spectators