Presidential Regulation on Publisher Rights: Is It Made for All Parties?

Did you know that on February 20, 2024, President Joko Widodo finally ratified the Presidential Regulation on Quality Journalism, more commonly known as Publisher Rights? Publisher Rights is a regulation designed to govern the business relationship between digital platforms and press companies.

After extensive discussions with various parties to decide on this Quality Journalism Presidential Regulation, Publisher Rights was finally ratified and is currently in a transition period.

However, the drafting of the regulation up to its enactment this year has sparked considerable debate among several parties. In fact, one of the largest news distribution platforms in Indonesia, Google, has issued a public statement in response to the ratification of this Presidential Regulation.

Our internal team has conducted in-depth research and studied various sources to thoroughly explore all updates regarding the Quality Journalism Presidential Regulation, from the ratification process to responses to ratification, and potential future scenarios. This article is a continuation of previously published content discussing Quality Journalism Presidential Regulation and the threat of Google's withdrawal from Indonesia. Read more below!

 

What Is the Presidential Regulation on Publisher Rights?

The Presidential Regulation on Publisher Rights, or Presidential Regulation Number 32 of 2024, is a regulation created on the basis that quality journalism needs to be supported by digital platform companies.

Deputy Minister of Communication and Information, Nezar Patria, stated that this regulation is designed to create a framework that enables press companies and digital platforms to negotiate and reach business agreements that benefit both parties.

The presence of digital platform companies also encourages the development of information technology, which subsequently impacts the practice of quality journalism. Therefore, the government sees the need to regulate the ecosystem of relationships between Digital Platform Companies (Google, social media platforms, and others) and Press Companies through this regulation.

The responsibilities of digital platform companies in supporting quality journalism are stipulated in Article 5, which states:

This regulation also discusses the mandate for the formation of a committee to oversee and ensure that digital platform companies can fulfill their obligations effectively.

The committee members consist of the Press Council, which does not represent press companies, ministries in the field of communication and informatics, and experts in the field of digital platform services who are not affiliated with digital platform companies or press companies.

Additionally, this regulation also stipulates funding for the implementation of the committee's tasks, sourced from press organizations, press companies, state assistance, and/or other aid.

President Joko Widodo emphasized on National Press Day 2024 (20/02/2024) that the enactment of this regulation is not aimed at reducing press freedom.

Furthermore, this regulation does not apply to content creators in Indonesia. This Presidential Regulation will come into effect six months after its publication, which is on August 20, 2024.

 

Why Was the Publisher Rights Presidential Regulation Ratified?

As it turns out, the design of the Quality Journalism Presidential Regulation began as early as 2020, when the government collaborated with press constituents.

The inception of this regulation stemmed from President Joko Widodo's directive during the commemoration of National Press Day 2020 to maintain the ecosystem and industry of the press to remain healthy, thereby providing quality information to the public.

Subsequently, the Press Council formed a Media Sustainability team and formulated a draft regulation titled “Responsibilities of Digital Platforms and Quality Journalism.”

Initially, the draft regulation was intended for amendment to the Information and Electronic Transactions (ITE) Law, so the Minister of Communication and Information at that time submitted the manuscript to the Coordinating Minister for Political, Legal, and Security Affairs for review. However, it was found that the regulation could not be incorporated into the ITE Law.

In 2022, the Deputy Legal of the Cabinet Secretariat proposed that the regulation become a Presidential Regulation or Government Regulation.

Finally, the Minister of Communication and Information held a meeting with the Press Council, Indonesian Journalists Association (hereinafter known as PWI), ATVSI (Association of Indonesian Private Television), AMSI (Association of Indonesian Cyber Media), SMSI (Union of Indonesian Cyber Media), and ATVLI (Association of Local Television Indonesia).

Furthermore, during the commemoration of National Press Day 2023, President Jokowi emphasized that one of the main issues of media digitization is the creation of irresponsible news. 

This is because more news is emerging from social media and other digital media, including foreign digital platforms, which are generally controlled by artificial intelligence and are not edited.

The President believes that their algorithms tend to prioritize business interests, resulting in sensational content without authentic quality being prioritized.

Additionally, another issue of media digitization is that around 60% of advertising spending is taken by digital media. The President argues that this will pose a significant challenge to conventional media industries.

Lastly, the issue raised is domestic data security and the utilization of algorithms to control public preferences. Based on these justifications, President Jokowi finally pushed for the completion of the Publisher Rights Presidential Regulation draft.

 

Why the Publisher Rights Presidential Regulation Sparks Debate?

The enactment of the Quality Journalism Presidential Regulation has sparked debate among various parties. Some sectors of society believe that this regulation will limit press freedom. However, others argue that it can ensure the quality of information received by the public.

Moreover, professional alliances such as the Indonesian Cyber Media Union (SMSI), the Independent Journalists Alliance (AJI), the Association of Indonesian Cyber Media (AMSI), and several other alliances demand that this regulation not become a boomerang for the press by sacrificing press freedom and the financial aspect of media companies.

This is because if the algorithm scheme of digital platforms is implemented, the information sources available on search engines may be filled by certain press companies only. This means that small media outlets that cannot compete with these press companies will struggle to appear in search results.

Certainly, this will affect small media outlets that heavily rely on traffic through search results. Their difficulty in entering the predetermined algorithm will reduce their revenue.

Furthermore, since small press companies do not have as much bargaining power as larger media companies, they may struggle to obtain revenue sharing and paid licenses as much as larger media companies do. This can certainly affect their income.

If the search results pages are dominated by specific content and media companies, then the public will struggle to access diverse information.

Even SMSI initially rejected this draft regulation and urged President Jokowi not to enact it. During the National Working Meeting (Rakernas) of SMSI in March 2023, they discussed the sustainability of this regulation and expressed their rejection.

There were eight points of rejection stated by SMSI regarding the Publisher Rights Presidential Regulation, which at that time was still in draft form, including:

• Publisher Rights may narrow the rights of small press companies.
• This regulation may strengthen the position of mainstream media and weaken startup-based media.
• This regulation creates unhealthy business competition between media, contrary to Law Number 40 of 1999 concerning the Press.
• SMSI, as one of the press constituents, urges the Press Council not to submit the draft regulation to the President.
• SMSI asks the Press Council to maintain the sustainability of small press companies in Indonesia.
• SMSI implores President Jokowi not to enact this regulation.
• SMSI urges all elements of the Indonesian government not to interfere with press company regulations other than Law Number 40 of 1999.
• SMSI is committed to instilling a journalistic code of ethics, press laws, and guidelines for cyber media coverage.

 

According to SMSI, this regulation contradicts President Jokowi's motivation to develop SMEs, including media initiated by domestic startups.

However, SMSI regrets that Article 8 of the draft Presidential Regulation, which states that Press Companies that can carry out Digital Platform Company Responsibilities are press companies verified by the Press Council, may limit the space for small media, regional media, and SME media.

This article has now been ratified as Article 6 of Presidential Regulation Number 32 of 2024, which states, "Press Companies as referred to in Article 5 subparagraphs b, c, and f are Press Companies that have been verified by the Press Council."

 

How Do Digital Platforms Respond to This Presidential Regulation?

The design of the Quality Journalism Presidential Regulation prompted a response from one of the digital platforms, Google. In response to the draft Quality Journalism Presidential Regulation, Michaela Browning, Vice President of Government Affairs and Public Policy for Google APAC, issued a written statement.

Google is concerned that if this regulation is enacted without changes, it will limit the variability of news sources for the public because the government grants authority to non-governmental institutions to assess online content and publishers who can profit from advertisements.

According to Google, the enactment of this regulation will affect the ability of search engines to provide credible, relevant, and diverse online information to users in Indonesia.

However, Google has made efforts to support the news ecosystem in Indonesia by providing useful, quality, and relevant information to all users. Google has also shared advertising revenue with news publishers, provided training, developed tools, and provided funding through Google programs.

Google also states that over one billion site visits to Indonesian media are sent monthly for free, as well as advertising and subscription revenue.

Google explains the impacts that will occur if the Quality Journalism Presidential Regulation is enacted without changes, including:

• Limiting the diversity of online news. Google will struggle to display diverse news from various publishers, including small publishers under SMSI. Google also argues that the public seeking more information perspectives will be disadvantaged because the sources they obtain on the internet may be less relevant and less neutral.
• Only benefiting a number of publishers. Google explains that with the limitation of content on this platform, the existence of media will be threatened, especially for developing media. This relates to the authority granted to non-governmental institutions to assess content suitable for display on Google.

If this regulation is enacted without changes, the threat that arises is Google withdrawing from Indonesia for news distribution affairs.

 

What Might Happen If Google Withdraws from Indonesia?

Google's withdrawal from Indonesia, especially with the loss of Google News as one of the sources of public information, could have significant impacts on the media industry and users.

Here are some possible impacts that may occur as a result of Google's withdrawal from Indonesia:

 

1. Decrease in Traffic and Revenue for Media Companies

The first possible impact is a decrease in traffic and media revenue. Google has been used by many local news media outlets to direct readers to their sites through links in search results.

The loss of Google News would prevent them from publishing news on this search engine and directing readers to access it, leading to a decrease in organic website traffic.

A decrease in traffic can affect the financial condition of news media. Reduced revenue could lead to a decrease in news content, layoffs, or media closures due to the continuously declining number of readers.

 

2. Lack of Diverse Information

Furthermore, Google News offers structured search results and contains minimal advertisements, making it one of the trusted sources of information for the Indonesian public.

Google's withdrawal from Indonesia would impact the diversity of accessible information, making it difficult for the public to obtain information from various perspectives.

 

3. Loss of Support for Quality Journalism

As mentioned earlier, Google has contributed to supporting quality journalism in Indonesia through its programs.

If Google withdraws from Indonesia, Indonesian society may lose support and resources that can develop quality journalism within the country.

 

The Discourse of Digital Platforms from a Country Is Nothing New

The discourse of several digital platforms leaving a country due to regulations similar to Publisher Rights is not unprecedented.

Previously, Canada and Australia faced threats of departure from major digital platforms, Google and Facebook (Meta), due to the enactment of regulations governing press and digital platform regulations similar to Publisher Rights.

In June 2023, Google, through a written statement, announced that it would remove Canadian news links from its Search, News, and Discover services following the enactment of Bill C-18 in Canada.

Bill C-18 is a regulation created by the Canadian government to enhance economic relations between news companies and online platforms, wherein online platforms must pay media companies to display news links when other platforms do it for free.

However, unlike Google, Meta seemed to face intense discussions. Like Google, Meta also condemned the removal of news services following the enactment of Bill C-18.

Yet, unlike Google, which reached a joint decision in November of last year, Meta decided to restrict access to news on Facebook and Instagram in Canada.

The restriction of news access to Meta's products impacted small news media companies. Some media outlets lost their online presence, which certainly affected their revenue.

Moreover, the restriction of news circulation on Facebook had a direct impact on Canadians during widespread forest fires in Canada. Affected citizens were unable to access the latest news about the spread of fires and potential rescue efforts.

Meanwhile, in Australia, Google and Facebook also threatened to withdraw due to the enactment of the News Media Bargaining Code, a regulation designed to ensure fair remuneration for news content published by news companies on digital platforms.

Google threatened to withdraw from Australia, but Facebook took decisive action. Facebook restricted the dissemination of news across Australia following the enactment of the News Media Bargaining Code.

However, Facebook and the Australian government reached a mutual agreement after extensive discussions addressing the concerns of these companies about the implementation of the regulation.

As a result of these discussions, the Australian government amended some regulations, allowing Facebook to restore news services in Australia. This incident caught the attention of the Indonesian government, leading to discussions of "benchmarking" studies in Australia for the future implementation of the Publisher Rights Presidential Regulation. 

 

How Does Europe Regulate the Distribution of Online News?

The establishment of regulations governing the distribution of online news is not limited to Canada, Australia, and Indonesia. European countries also have regulations on the dissemination of news formed by the European Union (EU). These regulations are known as the Copyright Directive and have been implemented since 2021.

This regulation is designed to regulate creativity in the digital era, which can benefit the creative sector, the press, researchers, educators, and cultural heritage institutions in the European Union.

Not only that, this regulation, along with the Directive on Television and Radio Programmers, aims to modernize EU copyright rules and facilitate consumers and creators in leveraging the digital world, including content and press articles uploaded online.

These rules will trigger the dissemination of more high-quality content, allow more digital use in several key areas of society, and uphold freedom of expression.

Technically, these rules will provide new rights to online publishers while ensuring that audiences can access information for free.

These rules also enable linking and inclusion of short excerpts from publisher content (except snippets). This allows news publishers to see previews of their content online.

Of the 27 countries in the EU, France is the first country to implement the Copyright Directive regulations, which provide a way for publishers and news companies to reach licensing agreements with digital platforms.

In response to this regulation, Google, as one of the digital platforms, issued an official statement.

In a written statement published in November 2021, Google stated that it would offer Extended News Previews to include more than just links and short previews.

Additionally, Google also stated that they do not display ads or profit from most searches and do not place ads on Google News. Furthermore, Google gives full control to determine whether their content should be displayed in searches and how much content can appear in previews.

Through this written statement, Google also explained that they look forward to ongoing collaboration with publishers and journalists to support journalism in the EU. The latest information released in June 2023 reveals that Google is still working to implement these regulations.

Although Google still complies with the existing regulations, it does not mean that the implementation of these regulations is without challenges.

In March 2024, the French competition watchdog fined Google €250 million or $272 million because the digital platform failed to comply with some commitments made in negotiations, such as compensating news publishers for their content.

Google was required to pay French news publishers in accordance with the Copyright Directive regulations released by the EU. The digital platform agreed to pay the fine as per negotiations, although it felt that the fine imposed was not proportional to the dispute raised by the French Supervisory Agency. 

 

Serious Considerations Regarding Google's Withdrawal as a Digital Platform

While the enactment of this presidential regulation invites arguments from various parties, the threat of Google withdrawing from news distribution affairs in Indonesia should be a serious concern.

Google is a digital platform where news media companies can distribute their news and make it accessible to users. As mentioned earlier, the cessation of Google's services in Indonesia might impact media outlets that rely on website traffic from Google.

Website traffic encompasses all information regarding the number of visitors, visitor activities, and duration of visits. Traffic can enhance brand awareness, and search engine rankings, as well as optimize marketing strategies. These benefits would certainly impact a company's revenue.

Google's departure from Indonesia for news distribution affairs might pose a problem for small, growing media outlets that depend on Google to drive traffic to their websites. Their businesses could be at risk of collapsing if they fail to generate traffic to their websites due to declining visitor numbers.

Furthermore, Google's exit from Indonesia might also affect news circulation in search engines, where larger media outlets could dominate search results, potentially influencing the direction of national news.

 

Questions Arising from Google's Response to Withdrawal

Google's response to the Publisher Rights regulation raises several hypotheses:

Firstly, if the Publisher Rights regulation is implemented in August 2024 and Google refuses to comply with the requirements, will Google deindex (removing web pages from search results so users won't find the content even with keywords or the site: URL method) all indexed content from media outlets registered with the Press Council?

Deindexing might occur if Google blocks access to news websites originating from Indonesia. This could pose a serious problem for website owners, particularly media companies, as it could decrease traffic and exposure to their websites.

Secondly, a hypothesis arises concerning traffic sources. Even if deindexing does not occur, a decrease in traffic sources might happen if websites cannot be accessed with an Indonesian IP address. This means that traffic sources from Indonesia might disappear, and Indonesian news websites may have to rely on traffic from abroad.

Furthermore, will Google's departure from Indonesia also lead to a decrease in journalism and writing job opportunities?

With the collapse of media companies due to the inability to generate optimal traffic, job opportunities for journalists and writers might drastically decline. Media companies are major employers of journalists.

Lastly, was the Publisher Rights regulation truly made and ratified to serve all parties? What's your viewpoint?