Articles

Forging a Competitive Edge: A Policy Paper on Mandating Certification for Industrial Management Consulting Services in Indonesia

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Indonesia’s industrial sector stands as the cornerstone of the national economy, yet it faces escalating challenges from intense global competition. To sustain growth and competitiveness, there is an urgent need for a strategic enhancement of the sector’s internal support systems. This policy paper identifies a critical structural weakness within this ecosystem: the absence of a standardized quality assurance mechanism for Industrial Management Consulting Services (JKMI). The current lack of regulation creates significant market uncertainty, hinders effective decision-making for industrial clients, and places a ceiling on the nation’s industrial potential.

To address this gap, this paper proposes a decisive regulatory intervention: the issuance of a Minister of Industry Regulation mandating business entity certification for all JKMI providers. The validity of this proposal is underpinned by a comprehensive Regulatory Impact Assessment (RIA) and a detailed Cost-Benefit Analysis (CBA). These evaluations rigorously compared the proposed regulatory framework against the status quo. The findings are unequivocal, demonstrating that the regulation offers substantial net benefits. It promises to provide industries with reliable and competent partners, incentivize consulting entities to invest in quality standards, and equip the government with superior tools for policy development.

Translating these findings into action, the paper concludes with four strategic recommendations. First, it urges the immediate finalization of the regulation to establish legal certainty. Second, it calls for a robust implementation framework for certification and classification. Third, a managed transition plan is recommended to accommodate existing entities. Finally, the paper advises executing strategic socialization and inter-agency coordination to ensure widespread adoption, thereby securing the long-term reliability of Indonesia’s industrial support infrastructure.

Legal Certainty in the Management and Supervision of Donations for Humanitarian Purposes in Indonesia

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The rapid progress of information technology has greatly enhanced public fundraising via donation-based crowdfunding platforms that use social media and digital channels. This innovation expands public access and fosters community involvement in social initiatives, yet it functions within a framework of legal ambiguity due to the lack of specific regulations governing the mechanisms, oversight, and accountability of online donation activities in Indonesia. This study seeks to examine the operational procedures of donation-based crowdfunding in Indonesia, identify regulatory deficiencies, and provide legislative remedies to enhance protection for contributors, platform operators, and recipients. This study utilizes a qualitative normative research technique, using legislative and conceptual methods, to analyze existing legislation and various instances of purported donation fund misappropriation. Research reveals that existing regulations, including Law No. 9 of 1961, Government Regulation No. 29 of 1980, and Minister of Social Affairs Regulation No. 8 of 2021, inadequately address the contemporary realities and risks of the digital donation landscape, leading to transparency deficiencies, opportunities for fraud, and diminished legal accountability. This thesis asserts that legislative change, enhanced supervisory mechanisms, and extensive legal literacy initiatives are essential to guarantee that donation-based crowdfunding functions in a reliable, responsible, and sustainable way within Indonesian society.

Proposed Business Strategy in OTT-Dominated Era to Counter the Declining Interconnection Business of PT. Telkom Indonesia

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The telecommunication industry in Indonesia has experienced significant changes, largely driven by the rapid growth of Over-the-Top (OTT) services such as WhatsApp, Facebook Messenger, and Telegram. These platforms have drastically impacted consumer behaviour, shifting preferences from traditional voice and SMS services to internet-based communication methods. PT Telkom Indonesia, a dominant player in the Indonesian telecommunications sector, has seen a decline in its interconnection business revenue, primarily due to this technological shift and the competition from OTT services. The primary objective of this research is to assess the current state of PT Telkom Indonesia’s interconnection business, identify the challenges and opportunities presented by the rise of OTT services, and propose effective business strategies to address the decline in traditional interconnection revenues. This study uses a qualitative research method, combining data from primary data which was gathered through in-depth interviews with key internal stakeholders. Secondary data came from industry reports, academic journals, financial statements, and regulatory documents. The research used various analytical tools like SWOT analysis, TOWS matrix, PESTEL analysis, Porter’s Five Forces framework, and VRIO analysis. PT Telkom Indonesia’s interconnection business has experienced a significant revenue decline of approximately 59.87%, dropping from IDR 4.76 trillion in 2018 to IDR 1.91 trillion in 2022. This decline is primarily due to the rise of OTT services, which offer cheaper and more flexible communication options than traditional interconnection services. External analysis using Porter’s Five Forces revealed high competition from the technology transition from Time Division Multiplexing (TDM) to Internet Protocol (IP) based interconnection, along with a strong threat from OTT substitutes. PESTEL analysis highlighted significant regulatory, technological, and social factors affecting the business. Internal analysis with the VRIO framework showed PT Telkom Indonesia’s strong infrastructure and large customer base but also identified a lack of innovation and agility in adapting to rapid market changes. The research concludes that PT Telkom Indonesia needs a comprehensive strategy to address the decline in its interconnection business. One of the initiative strategies for PT. Telkom Indonesia, due to the regulation about transition from Time-Division Multiplexing (TDM) to Internet Protocol (IP) based interconnection, is becoming an IP Hubber. By becoming IP Hubber, PT. Telkom Indonesia can leverage its existing infrastructure and expertise to maintain significant revenue from its interconnection business, especially in transit services, which are a major contributor to its current interconnection revenue. Investing in R&D is crucial to stay competitive, offer bundled services, and form partnerships with OTT providers to diversify revenue. Additionally, Telkom should implement a knowledge transfer program to retain expertise in TDM based interconnection and enhance skills in IP-based interconnection, ensuring Telkom maintains its competitive edge in Indonesia’s telecommunications industry

Budget Transparency Nagan Raya Regency Government

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This study aims to examine the effect of legislative oversight, regulation, technology utilization, and leadership style on budget transparency. This research was conducted based on information obtained from questionnaires distributed to respondents. This research sampling technique uses purposive sampling method. This research uses quantitative methods by distributing questionnaires to 132 local officials who work in the Regional Apparatus Organization of Nagan Raya Regency. The data analysis technique used is multiple linear regression with analysis tools using SPSS 26 software. The results of this study indicate that legislative oversight and leadership style have a positive effect on budget transparency. While regulation and technology utilization have a negative effect on budget transparency.

Legal Issues Involved in Electronic Payments System in India

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The Indian economy has developed rapidly after the induction of digital interfaces in commerce, trade, and industry particularly after the popularisation of electronic payment systems or digital banking. Since 2016 when the Government of India announced demonetization, electronic payments have been rising and are expected to continue in the future because the government has promoted these types of payments. Internet penetration in India was 47 percent in 2022 and it was more than 100 percent in urban areas as compared to rural areas, now with the expansion of the information technology-enabled generation which is using digital modes of payments more in their daily transactions has resulted in more than 140 crore rupees each day through various methods of digital prevailing in India. State Governments are also prioritizing and making more efforts to ensure that the unprivileged people should have to be provided access to web services so that they may also make payments conciliatory through this method.  Resultantly, there are 103 billion digital transactions worth Indian rupee 166 trillion in the financial year 2023.  It is also expected that digital transactions will also rise to 411 trillion by the year 2027.  Consequently, on advent of high tech system of fund transfer and its enormous use several cases of fraud have also been taking place on daily basis. The legislation has enacted various laws in connivance with the global laws, to resolve the problem, but they are still prevailing.  The present study has been conducted to identify the legal issues and the results arising from these issues and to recommend some pathways to recover from these obstacles.  This study further explains the further way to improvement in fund transfer and making payments using digital mode.  Consequently, it is found that the present legal system does not have sufficient provisions to stop such fraud, and blockage of money with the UPI, payment gateways, banks, and merchants.  There is no single online solution to these problems.  The banking ombudsman is working on resolving some of the issues, but due to the red tapism, such transactions of payment failure and fraud websites could not be resolved.  Sufficient amendments dealing with such transactions have not been incorporated in the present Consumer Protection Act.  Hence, it is recommended that there should be a virtual hearing in the office of the ombudsman as well as in the court of President Consumers Protection.