Netflix, YouTube Face New Content Filtering Rules in Indonesia

TLDRs;

• Indonesia plans new rules requiring streaming platforms like Netflix and YouTube to filter content, aligning with cinema standards.
• The Omnibus Law on Culture aims to modernize film and cultural regulations while addressing gaps in digital oversight.
• Surveys show many Indonesians support filtering streaming content for audience suitability, citing concerns over unregulated material.
• Netflix explores AI video tools while Indonesia pushes stricter oversight, underscoring the tension between innovation and regulation.

The Indonesian government is moving forward with plans to tighten regulation on online streaming platforms, including Netflix, YouTube, Amazon Prime Video, Disney+ Hotstar, and HBO Max.

Under the proposed framework, content available on these platforms would be subject to mandatory filtering similar to that already imposed on films screened in cinemas and shows aired on television.

The initiative is being advanced by the Ministry of Culture as part of the broader Omnibus Law on Culture. This legislation aims to modernize Indonesia’s regulatory framework by updating provisions in film, cultural advancement, and cultural heritage laws, ensuring they remain relevant in the digital age.

Film Censorship Board Voices Concern

Naswardi, chairman of the Film Censorship Board (Lembaga Sensor Film, LSF), has highlighted the imbalance in oversight between traditional media and digital platforms. He emphasized that films shown in theaters and programs aired on television already undergo rigorous review processes, while content streamed online remains largely unregulated.

Support for stricter oversight has grown in recent years. A 2024 LSF survey revealed that a significant portion of Indonesians favor filtering streaming content to ensure age-appropriate viewing.

Streaming Popularity Drives Push

Streaming adoption has skyrocketed in Indonesia, particularly among younger demographics. A recent Populix survey found that 33% of respondents watch video-streaming services daily. YouTube leads as the most widely accessed platform, with Netflix following closely behind.

With such widespread usage, policymakers argue that regulatory intervention is needed to protect vulnerable audiences and preserve cultural norms. Industry analysts, however, warn that overly strict rules could stifle creative freedom and limit the diversity of content available to Indonesian viewers.

Netflix’s AI Ambitions Add Context

The government’s move comes at a time when Netflix itself is exploring new technologies that could reshape the way entertainment is produced. In July, industry sources revealed that Netflix is experimenting with generative AI tools developed by New York-based startup Runway AI.

The platform has reportedly tested Runway’s video-generation software for use in content production, though Netflix has not confirmed details publicly. Co-CEO Ted Sarandos has, however, acknowledged that the company is integrating AI into its creative processes. For example, AI was used to simulate a building collapse in the Argentine series El Eternaut, though that project did not involve Runway.

Runway, valued at over US$3 billion following significant investment rounds, has become a key player in AI-driven video generation. Its growing role in the entertainment sector underscores how technology is evolving faster than regulation, highlighting the complexity of implementing content oversight in an era of AI-powered production.

Outlook for Indonesia’s Streaming Market

If passed, the Omnibus Law on Culture could reshape Indonesia’s rapidly expanding digital entertainment ecosystem. Streaming giants may be required to submit content for review, potentially slowing down releases or leading to region-specific edits.

For global players like Netflix and YouTube, the regulations could increase compliance costs and alter their content strategies in Southeast Asia’s largest digital market. Meanwhile, local audiences may see shifts in what content is available, or how quickly it arrives.

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