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The Indonesian government has given Netflix 1 month to comply with its laws and pay its taxes, or the company may face being banned in the country.
Netflix needs to apply for a special kind of license known as a BUT in order to operate in the country, which means it will have to have a physical office in Indonesia and employ Indonesians.
It will also need to pay taxes to the Indonesian government for every transaction it makes in the country.
Netflix has not yet commented on whether it will apply for a BUT license and comply with the regulations or whether it will simply exit the country.
It entered Indonesia at the beginning of 2016 as part of its massive international expansion plan, which saw it enter a staggering 130 new countries.