Indonesia may block several foreign-owned OTAs this week
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THE Indonesian Ministry of Communication and Information said it gave warnings on March 5 to six foreign-owned online travel agents (OTA) that are not yet registered as private electronic system providers. They were given five working days to register – otherwise, they may be subject to punitive measures, including a block.
At the time of writing, only Agoda and Airbnb have registered with the ministry. Both companies’ registration dates are listed as March 12.
The other four – Booking.com, Expedia, Klook, and Trivago – are not yet on the registry. Other companies registered with the ministry include Line, Yahoo Indonesia, as well as Meta and its properties Instagram and WhatsApp.
The Indonesian government has tightened up its oversight of foreign tech companies since last year. TikTok Shop notably found itself banned in late 2023, which would be reversed following its acquisition of local ecommerce giant Tokopedia.
The government also announced plans to ban the sale of imported goods priced below US$100 on ecommerce platforms in the same year. The rule would apply to goods traded by foreign merchants.
Outgoing President Joko Widodo, meanwhile, issued a presidential decree last month that would require platforms like Meta and Google to compensate news publishers.
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At the same time, Prabowo Subianto – who is set to become Indonesia’s next president should the election quick-count results are confirmed – has stated that attracting foreign investment will be a key focus for his administration. TECH IN ASIA
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