Indonesia is said to be drafting law allowing media organizations to receive payments from digital platforms or aggregators that carry their content, its Press Council reportedly said on Thursday.

The new law is expected to level the playing field between media and tech firms in terms of providing content and generating profit, said Arif Zulkifli, a member of Indonesia’s Press Council, according to a Reuters‘ report.

The law, proposed two years ago, was inspired by similar legislation in Australia and Germany. It is expected to be issued as a presidential regulation within a month, according to the report.

Arif said digital platforms in Indonesia including Facebook, Google and other local aggregators benefit from carrying content generated by media companies while “most media receive small profits”.”[There is] no balance in this,” he reportedly said.

Under the new law, the Press Council will determine price structures and payments schemes, besides acting as mediator in the event of a dispute.

Speaking at an event commemorating Indonesian press on Thursday, President Joko Widodo cited an urgent need for the new law since 60 percent of the advertisement market in the Southeast Asian country is dominated by mainly foreign digital platforms.

“Around 60 percent of advertisement spending were taken by digital media, especially foreign platforms. This is sad,” he said.

Elsewhere in Australia, the News Media Bargaining Code took effect in March 2021. Since then, tech firms have inked more than 30 deals with media outlets compensating them for content which generated clicks and advertising dollars, according to a report by the country’s Treasury Department, the report added.

These agreements have enabled news businesses to employ additional journalists and make other valuable investments in their operations, the report said.

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