Fine Rule Press Release
On January 16th this year, President Republic of Indonesia has signed a Presidential decree no 7 about Tariff and Type of Non-Tax State Income in the Department of Communication and Information. Similar with other rule or decree, this decree valid from the date of signing. With the enactment of this decree, the previous regulation, namely Regulation No. 28 Year 2005 on the same issue is revoked and declared invalid.
However, exceptions apply to administrative sanctions from the telecommunications operation, because Article 14 mentions in full, that the imposition of tariffs on the types of non-tax state revenue derived from the Organization of Post and Telecommunications such as: a. administrative sanctions in the form of fines for violations of the permit obligation telecommunications network administration and / or basic telephony services; and b. administrative sanctions in the form of fines for breach of obligation of the organization permit value-added telephony services and multimedia services, entered into force 1 (one) year after this Government Regulation set. Hence the imposition of sanctions fines began an effective force on the date of January 16, 2010.
Although previously announced as in press releases dated February 3, 2009, and yet through this press release, the regulator wants to remind the Regulation No. 7 year 2009 to the telecommunications providers so they can prepare themselves better before the enactment of the provisions of the fine sanctions. The consequences of the implementation of such regulation can significantly impact for the telecommunications rules violator.
Below are several important things on Regulation no 7 of year 2009.
1. Administrative sanctions for non-achievable development:
- less than 40% from commitment: IDR 600m
- between 41% to 70% from commitment: IDR 400m
- between 91% to 90% from commitment: IDR 200m
2. Sanction in the form of fine for not meeting service quality standards are set according to prevailing regulation, IDR 200m / item.
3. Sanctions in the form of fines for violations due to the absence of compliance with the provision of interconnection schedule (schedule process of the answer, schedule negotiation process, the process of providing access to schedules, etc.) as stipulated in the regulations, IDR 600m / item.
4. Sanctions in the form of fines for violation of price discrimination and interconnection access, IDR 10b.
5. Sanctions in the form of fines for violations of use of domestic products due to capital expenditures that do not meet the applicable provisions, 15% x (Cons Obligations)% x Capital Expenditures / year.
6. Sanctions in the form of fines for violations of the use of domestic production due to operational expenditures that do not meet the applicable provisions, 15% x (Cons Obligations)% x Operational Expenditures / year.
7. Does not meet the minimum services which must be provided, IDR 10m / service.
(translated from www.postel.go.id)
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