The Covid-19 pandemic has accelerated the transition from terrestrial to digital in the media and entertainment sector. The restrictions on movement (semi-lockdown) imposed by the government during the pandemic caused many mainstream media outlets to limit their production, prompting many mainstream public figures and artists to venture onto digital platforms and become independent content creators. Digital and social media accounts and channels became hugely popular because they were easily accessible to the public during the pandemic.
The Department of Communications and Information Technology has revised its Broadcasting Regulations and one of the main points is the switch from analogue television to digital broadcasting. The migration will take place in three stages, the last on November 2, 2022, by which time all television broadcasts must be digital.
Although mainstream media has started to recover and is almost back to normal, artists’ social media accounts and digital channels remain a staple of entertainment in Indonesian homes. We have seen a trend where investors and brand owners have started to target and advertise directly through such social media accounts and digital channels.
In line with the shift to digital media, metaverses and non-fungible tokens (NFTs) are other themes that are on the rise. NFTs were the first to become famous because a content creator who started making NFTs from his own images claimed he managed to sell his NFTs for a large sum of money. This then led to a surge in the creation of NFTs by content creators looking to gain the same material benefits.
Meanwhile, the Metaverse is also gaining traction in Indonesia, although it’s still not as popular as NFTs as it requires more infrastructure and capital to set up and operate. However, we are beginning to see a trend where media and entertainment companies are beginning to explore the possibility and prepare to create their own metaverse. They are beginning to target and acquire specific public figures and content creators along with their respective content to include in their metaverse.
In support of the President’s program for creative industries, the government issued Government Decree No. 24 of 2022 Implementing Regulation of the Law on Creative Industries (Act No. 24 of 2019), which, among other things, establishes an intellectual property (IP)-based funding program for creative industries . The government regulation provides guidelines for entrepreneurs in creative industries, including content creators, to obtain funding by encumbering their relevant intellectual property, among other things. The funding program is seen as the answer for artists and content creators alike to capitalize on their intellectual property and obtain funding to expand and develop their creative works. The hope is that the government will follow the government decree by issuing the necessary technical guidelines while developing and providing facilities and infrastructure to implement the IP-based funding system.
Legal and regulatory framework
In Indonesia, media and entertainment are not governed by a single and unified legal framework; They are regulated by different laws and regulations in multiple sectors and under different authorities.
IP rights in the media and entertainment sector are mainly regulated by the Copyright Act (Act No. 28 of 2014) and the Trademark Act (Act No. 20 of 2016, partially amended by Law No. 11 of 2020). Copyright law regulates content produced in the media and entertainment sector that falls under copyright protection and trademark law regulates the branding side. The Copyright Act and the Trademark Act come under the General Directorate of Intellectual Property at the Ministry of Justice.
The main regulatory framework for digital content in Indonesia is the Electronic Information and Transaction Law and its implementing regulations, including Government Regulation No. 71 of 2019 on the Provision of Electronic Systems and Transactions and Minister of Communications and Information Technology Regulation No. 5 of 2020 on Providers Electronic Systems in the Private Sector (as amended) (collectively the IT Legislation).