Jakarta, INTI – The growing prevalence of illegal internet usage in Indonesia has become an increasingly urgent concern, highlighting significant regulatory gaps between licensed service providers and unregulated operators.
As digital demand continues to surge, this imbalance not only threatens fair competition within the telecommunications sector but also raises serious concerns about service quality, cybersecurity, and the long-term sustainability of the industry.
Regulatory Imbalance Between Local ISPs and Global Satellite Providers
According to Henry, Chairman of APJII Jakarta chapter, regulatory disparities are inevitable due to the heavy obligations imposed on local ISPs.
“Local ISPs are subject to various regulations,” he explained, referring to requirements such as establishing POP (Point of Presence) infrastructure and expanding fiber networks across regions.
In contrast, global satellite service providers operate without many of these obligations, creating an uneven playing field. “One side faces extensive regulatory requirements, while the other operates with far fewer constraints,” he added.
Pushing for a Level Playing Field Through Innovation
To remain competitive, APJII continues to encourage its members to innovate beyond traditional internet services. One such effort includes participation in international events like the Smart City Summit & Expo in Taiwan, where industry players explore emerging IT and AI-based solutions.
Henry emphasized that Indonesia must move in this direction. “Associations need to actively drive innovation. If we rely solely on basic internet services, we risk falling behind,” he noted.
Illegal Resale and the Grey Market Challenge
While existing regulations, such as those governing RT/RW Net operators, are considered relatively responsive, enforcement remains a critical issue. These community-based networks are required to operate under licensed ISPs, yet illegal resale practices and grey market activities persist.
This raises concerns over whether current monitoring mechanisms are effective. Industry associations and regulators are therefore expected to strengthen both oversight and enforcement to ensure compliance across the sector.
Conclusion
The rise of illegal internet usage in Indonesia reflects deeper structural challenges within the country’s digital ecosystem, particularly the imbalance in regulatory frameworks and enforcement.
Addressing this issue requires not only stricter supervision of unregulated practices but also a more balanced policy approach that ensures fair competition between local ISPs and global players. At the same time, fostering innovation and technological advancement will be essential for Indonesia to remain competitive in an increasingly digital and interconnected world.
Read more: LEO VS Fiber: The Future of Indonesia's Internet Revealed