1. Startups

Kominfo Conducts Public Test of Regulations on Domain Name Management

Ministry of Communication and Informatics (Kemenkominfo) is carrying out a public review of the Draft Ministerial Regulation (RPM) on Domain Management. Within about 10 days starting from March 30 to April 8, 2013, the public, academics, and practitioners can provide feedback on the RPM.

RPM Domain Management is a derivative of Law no. 11 of 2008 concerning Information and Electronic Transactions and Government Regulation No. 82 of 2012 concerning the Implementation of Electronic Systems and Transactions. This RPM regulates domain name management including management, registration, use, transfer and requirements as well as procedures for determining domain name managers. This RPM draft itself can be downloaded directly through the page situs Kemenkominfo.

One of the crucial articles that are important to note in this RPM is Article 39 which states that state administrators, business entities and organizations domiciled in the territory of Indonesia must use Indonesian domain names. Foreign companies operating in Indonesia must also meet the requirements to use a domain name ending in .id.

This local domain usage rule raises the pros and cons because of its advantages and disadvantages. On the one hand, this RPM will boost the growth of the use of local domains and make it easier for authorities to monitor the use of domains and prevent fraud, but on the other hand this regulation is a separate obstacle for companies that are just growing or startup.

In accordance with the RPM, registrants of domain name users are required to meet the requirements set by the domain name manager. For the .co.id domain, for example, some domain name managers require a notarial deed or a Trading Business License (SIUP) other than an ID card. These conditions are burdensome startup who just started their business.

Another obstacle will arise if a company or startup Indonesia is also targeting the international market in addition to the domestic market. The use of co.id domains presents technical barriers as well as reputational problems when compared to .com domains. Sites with local domains are difficult to appear on the front page of search engines for global consumers. Overseas users will also be more reluctant to transact with sites that have .co.id compared to sites with .com domains. Buying both domains might be a solution for Indonesian companies to get around this regulation.

For foreign companies, this RPM doesn't seem to be a big problem because now there are many foreign companies that have a .co.id domain in Indonesian in addition to the .com domain as their main site. This RPM also does not have much effect on existing companies because this RPM is not retroactive.

Most of these RPM regulate the management of domain names which are divided into registries (for example PANDI) and registrars. Until April 8th, Kemenkominfo receive feedback on this RPM via email to gatot_b@postel.go.id and antonius.malau@kominfo.go.id. If you do have objections, there's nothing wrong with trying to voice them before the RPM is ratified as a Ministerial Regulation.

Image Source: L.A. City.

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