ChatGPT risks ban in Indonesia if it fails to register as electronic service provider

ChatGPT, OpenAI’s new tool that can generate human-like text, is currently facing threats from Indonesia due to administrative hurdles. This comes after OpenAI introduced ChatGPT Plus, a new pilot subscription plan, priced at US$20 per month. A ministry official in Indonesia said that ChatGPT must register as an electronic service provider (PSE) if it intends to generate revenue in Indonesia. This is in an attempt to regulate the uses of the chatbot for the purposes of taxation and content supervision.

Semuel Abrijani Pangerapan, director general of informatics applications at the ministry, said that a company will be required to register if they are introducing a paid plan. Regarding OpenAI, he said, “We’ll see whether it has entered the Indonesian market or not. If they target [the Indonesian market, we will write them and ask them to register for the electronic system operator (PSE) license.”

According to media reports, Pangerapan also went on to share that not much investigation was done to understand ChatGPT’s presence in Indonesia.  "There is no (communication). We haven't analysed it, we will analyse it," he concluded.

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Last year, the ministry told all internet services operating in Indonesia, both domestic and international, to register as a PSE for the purposes of cyber security and user protection. Failure to comply would result in being banned from the country.

Regarding OpenAI's decision to monetise ChatGPT plus, it seems like a no-brainer that the platform would begin capitalising on its popularity by charging. However, its reason for demanding revenue might be deeper than just having a significant revenue growth, say industry players. 

"I believe the OpenAI team is learning from past products that became viral and fizzled out. In short, the OpenAI team is striking while the iron is hot for a couple of reasons," said Pramodh Rai, the CEO and co-founder of Cyber Sierra, a cyber security firm. "For one, its important to monetise the service at its peak of interest level, thereby increasing its chances of securing a reliable user base, especially before competition catches up. Secondly, it's good to identity serious users whom the team can study for product development opportunities."

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