Understanding the Network Access Provider (NAP) License in Indonesia: Roles, Requirements, and Differences from ISP

As Indonesia continues to experience rapid digital infrastructure growth and expanding internet penetration, the need for legally licensed telecommunications providers has become increasingly critical. Two of the main licenses in this sector are the Network Access Provider (NAP) and the Internet Service Provider (ISP). While these terms may sound similar, they serve distinct roles and operate in different areas of the telecommunications ecosystem.

This article explores what the NAP license is, its function, how to apply for it, and how it differs from the ISP license.

What Is a Network Access Provider (NAP) License?

A Network Access Provider (NAP) is a licensed entity authorized by the government to provide private (non-public) network access and infrastructure services, both domestically and internationally. Unlike ISPs, NAPs do not directly offer internet services to end-users. Instead, they focus on interconnecting networks between locations, data centers, and global network links.

In practice, NAPs typically:

• Provide network backhaul infrastructure
  

• Manage interconnections between operators
  

• Sell international bandwidth (IP Transit) to ISPs or large enterprises
  

• Offer leased line, MPLS, and data center interconnectivity services
  

In short, NAPs serve as the backbone of digital infrastructure, while ISPs operate at the end-user level.

Key Functions of a NAP

1. Building Network Infrastructure
    NAPs are responsible for deploying fiber-optic cables, transmission systems, and international gateways.
   

2. Distributing Connectivity
    They act as upstream bandwidth providers to ISPs, corporate networks, and government entities.
   

3. Ensuring National Network Redundancy
    Due to their broad geographical scope, NAPs play a vital role in maintaining the resilience and stability of Indonesia’s digital networks.

NAP vs. ISP: What’s the Difference?

While both are network service providers, NAPs operate upstream on the infrastructure level, whereas ISPs serve downstream, directly catering to the public.

How to Apply for a NAP License in Indonesia

To operate legally as a NAP, a company must obtain a Fixed Private Network License from the Ministry of Communication and Informatics (Kominfo). The process involves several stages:

1. Prepare Legal Documents

Key documents required include:

• Deed of incorporation and amendments
  

• Corporate Tax ID (NPWP)
  

• Business Identification Number (NIB)
  

• Domicile letter
  

• Business proposal and network development plan
  

2. Submit via OSS System

All applications must go through the Online Single Submission (OSS) system:

• Visit oss.go.id
  

• Create an account and select the appropriate license type
  

• Complete the form and upload supporting documents
  

3. Technical and Administrative Review

Kominfo will evaluate:

• Document completeness
  

• Technical feasibility of the proposed network
  

• Alignment with the National Telecommunications Master Plan
  

4. Issuance of License

If approved, Kominfo will issue:

• A decree for Fixed Private Network Operation
  

• An operational license certificate (valid for a set period and renewable)

Responsibilities of a NAP License Holder

Once licensed, a NAP operator must:

• Submit regular reports to Kominfo
  

• Maintain service quality according to QoS standards
  

• Secure its networks against misuse or violations
  

• Provide lawful interception access when required by law enforcement (in line with the ITE Law)
  

When Should a Company Choose a NAP over an ISP License?

• When providing inter-office connectivity (e.g., across bank branches or government offices)
  

• When offering international IP Transit services
  

• For companies delivering connectivity to cloud platforms, CDNs, or data centers
  

• When building a private communication ecosystem independent of retail internet providers