ATSI Calls for Telecom Regulation Review, Highlights Outdated BHP Burden on Operators

Asosiasi Penyelenggara Telekomunikasi Seluruh Indonesia (ATSI) urges the government to reassess the Biaya Hak Penggunaan (BHP), a regulatory charge imposed solely on telecommunication operators. This call emerges amid substantial changes in the digital communications landscape, where traditional voice services have largely shifted to digital applications. ATSI argues that the current regulatory framework no longer aligns with industry realities, placing an unfair burden on operators while ignoring new players.

ATSI’s Secretary General, Merza Fachys, emphasized at the Indonesia Digital Outlook 2026 event that BHP obligations are outdated and require comprehensive review. He highlighted that voice communication has transformed into a widely accessible commodity via digital platforms, and the continuing imposition of BHP on telecommunication infrastructures creates a significant imbalance.

The Outdated Burden of Biaya Hak Penggunaan (BHP)

Merza Fachys explained that traditional voice services are no longer an exclusive domain of cellular operators. Over-The-Top (OTT) platforms like Google, Telegram, Facebook, and Gojek have introduced voice communication accessible through internet-based applications, providing users with alternatives independent of operator networks.

“Voice telephony has become a commoditized service that users can access effortlessly,” Merza stated. Despite this shift, the BHP is still fully charged to operators, who maintain the physical networks enabling connectivity. This ongoing financial pressure challenges the sustainability and growth of telecommunication providers.

Challenges of Unequal Regulatory Obligations

Merza criticized the disparity where only legacy operators bear the costs related to BHP, while OTT providers operate with little regulatory burden. He noted that telecommunications today form just one segment within a broader digital ecosystem. Yet, regulatory obligations have not adapted to treat all players equitably.

“We advocate for a thorough reevaluation of telecommunication regulations, beyond merely seeking incentives,” Merza stated. He believes a wholesale regulatory update is essential to remove barriers that hinder the healthy expansion of the industry. Such reform would establish fairness and promote balanced competition across the sector.

Call for Equal Responsibilities in the Digital Ecosystem

The telecommunication industry has evolved into a complex digital ecosystem, with operators primarily providing connectivity infrastructure. However, existing regulations predominantly govern traditional sector participants. New digital players often face minimal or no corresponding regulatory requirements.

Merza underlined the necessity of equalizing obligations across all industry actors. This approach would foster a sustainable environment where both incumbents and emerging digital firms coexist, innovate, and compete on a level playing field.

Impact on Industry Investment and Infrastructure

Teguh Prasetyo, Chair of the IoT, AI & Big Data Industry at Masyarakat Telematika Indonesia (Mastel), reinforced these concerns by pointing out the asymmetry between connectivity providers and global digital platforms. He warned the lack of balanced benefits undermines operators’ capacity to reinvest.

“Telco companies are not asking for excessive support, but a regulatory climate that allows them to return to healthy double-digit growth,” Teguh explained. When operators remain financially robust, they can significantly accelerate infrastructure investments, critical for expanding broadband access and improving service quality.

Digital Taxation and Government Revenue Gaps

The uneven regulatory environment also affects the government’s ability to collect tax revenues evenly. Economist Dyah Ayu from the Center of Economic and Law Studies (Celios) noted that major global OTT corporations generate substantial income in Indonesia yet contribute disproportionately little tax.

She cited Meta, reporting about Rp120 trillion (approximately $8.1 billion) in revenue with Rp45 trillion (around $3 billion) in net profit locally. However, the current tax system depends heavily on the physical presence of these companies, leaving a taxation gap given their digital operational models.

Urgency of Policy Reform for Healthy Industry Growth

The Indonesian government faces critical pressure to respond to industry demands by revisiting and updating telecommunication regulations. Evaluating the BHP is a fundamental step to alleviating operator costs and enabling fair competition between telcos and OTT platforms.

Creating an equitable regulatory framework would encourage fair market conditions, facilitate sustainable industry growth, and support increased investment in national connectivity infrastructure. Without reform, the sector risks stagnation and missed opportunities for digital economy advancement.

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