Potentially curbing its intended global rollout, Netflix is being blocked in Indonesia – a move initiated by state-run telecommunications provider Telkom.
PT Telkom Indonesia, the largest telco in the country, announced that it had blocked access to the popular streaming service on all its Internet platforms starting 12 a.m. Wednesday.
Telkom’s director of consumers Dian Rachmawan pointed to violations of Indonesia’s broadcast laws as well as violent and “pornographic” content as reasons behind the ban. The executive, however, did not specify the content that he believes is indecent, thus violating such laws.
Reports added that earlier this week, Netflix was given by the Indonesian government a one-month deadline to comply with broadcast regulations, such as establishing a local office, paying taxes, and hiring local staff.
Rachmawan, however, said in a separate interview that he did not want a total ban of Netflix in the county, but instead seeks compliance. "They [Netflix] are still small here. While they are still small, we will teach them to follow the rules here,” he said.
AT CES 2016 earlier this month, Netflix CEO Reed Hastings said they are entering over 130 countries around the world, excluding China. Netflix has since then been working with individual countries to offer its streaming content in line with local regulations and cultural considerations.
Netflix also announced it will crack down on virtual private network (VPN) use in order to prevent access of foreign content on the platform.
Indonesia is believed to represent a big chunk of Netflix’s target global market – it is the fourth most populous nation after China, India, and the United States. eMarketer senior analyst Paul Verna said that as it enters Asia, Netflix would have to not just produce creative content for the region but also restrict content that needs censorship.
“In China, Indonesia, and the Middle East there are going to be all sorts of issues,” said Verna in an interview.
The ban in Indonesia, Verna pointed out, signals the cultural and bureaucratic challenges that Netflix will come across with its global expansion, which fuels much of its current growth.
Photo: Marit & Toomas Hinnosaar | Flickr
