Jakarta, May 22 -- Indonesia's Ministry of Communication and Digital Affairs is finalizing a policy study that would legally mandate international tech companies and digital platforms to establish local offices in the country, officials said on Friday.

The regulation targets foreign "Electronic System Providers" (ESPs)-ranging from social media giants to cloud infrastructure firms-that maintain a massive user base in Southeast Asia's largest economy.

The ongoing study will determine whether the local office requirement will be enforced through a sweeping government regulation, a ministerial decree, or updated licensing frameworks.

"We hope to complete this study as soon as possible this year," said Alexander Sabar, the ministry's direc...