Google Indonesia Says Proposed Copyright Law Amendments Could Slow Digital Growth and AI Innovation

Google Indonesia has warned that proposed amendments to the Copyright Law could slow the country’s digital economic growth, hinder AI innovation, and reduce the competitiveness of local creators and businesses.

According to the company, at a time when technology adoption is accelerating and the creator economy is expanding, regulations that are overly broad and rigid could discourage investment and undermine the future of Indonesia’s digital ecosystem.

In its official statement, Google described Indonesia as one of the region’s fastest-growing digital economies, supported by a rapidly expanding creative ecosystem and strong technology adoption. Indonesia’s digital gross merchandise value (GMV) is projected to reach between US$180 billion and US$340 billion by 2030.

The company also highlighted the growth of Indonesia’s creator economy and AI adoption. More than 4,000 Indonesian YouTube creators now have over one million subscribers, while around 17 million local small businesses have adopted AI to improve efficiency and business innovation.

On the consumer side, Google said more than 80 percent of Indonesians already use AI tools in their daily lives, including for research, accelerating learning, and staying safe online.

However, Google argued that this momentum is now at risk as discussions continue over revisions to copyright regulations.

The company said achieving a balance between copyright protection and maintaining an open internet and AI ecosystem is challenging but achievable. Still, Google believes mandates that are too broad could create unintended consequences for digital industry players.

Raises Concerns Over Potential Limits to Access to Information

One of Google’s main concerns relates to provisions that could restrict platforms from displaying links and content snippets, including news content.

According to Google, the proposed changes could reduce digital content distribution and limit commercial partnerships that currently exist between platforms and publishers.

Google noted that it currently works with more than 30 publishers in Indonesia, including through its News Showcase program.

The company also emphasized that it already provides website owners with tools to control how their content appears in Search and generative AI features.

Warns of Potential Impact on Digital Creators

Google also highlighted potential consequences for Indonesia’s creator economy. In its statement, the company said Indonesia’s creative industry contributed approximately Rp8.4 trillion to the national economy and supported more than 190,000 full-time jobs in 2025.

According to Google, the current model of direct revenue distribution to creators through digital platforms could be disrupted if new regulations alter existing mechanisms.

The company also warned of the risk of over-blocking, where platforms may excessively restrict content to avoid legal liability.

Google argued that such conditions could make it harder for emerging creators to be discovered and grow.

Criticizes Mandatory AI Content Labeling Requirements

Beyond copyright issues, Google also raised concerns over proposals requiring all AI-generated content to be proactively identified and labeled.

The company said it supports transparency in AI use and pointed to tools such as SynthID to help identify AI-generated media. On YouTube, creators are already required to disclose altered or synthetic content.

However, Google argued that broad labeling requirements could create unnecessary burdens for businesses, including SMEs using simple AI features for everyday tasks such as automated visual editing.

According to Google, overly restrictive regulations could slow investment in research and development, reduce innovation, and leave Indonesian startups and developers less competitive than global peers.

Google said it will continue engaging with the government and encourage the development of regulations that protect copyright while supporting digital growth.

“By working together, we can design copyright laws that protect innovators while accelerating Indonesia’s digital future,” Google said in its statement.