The Indonesian Government has established regulations to govern the operation of electronic systems, as outlined in Government Regulation No. 71 of 2019. However, these regulations require further elaboration to specify how private entities should manage their electronic systems effectively. This is crucial considering that most electronic systems are operated by the private sector, reflecting the rapid growth of online businesses in Indonesia.
To address this, the Ministry of Communication and Informatics (KOMINFO) issued Ministerial Regulation No. 10 of 2021 to amend Regulation No. 5 of 2020. This regulation replaces Regulation No. 19 of 2014 on Internet Site Management and Regulation No. 36 of 2014 on the Registration of Electronic System Providers (PSE). This article outlines the obligations, requirements, and sanctions of Private Scope Electronic System Providers (PSE Lingkup Privat).
1. Who Is Required to Register for a PSE Certificate?
According to the regulation, the following entities are required to register as Private Scope Electronic System Providers through the Online Single Submission (OSS) system:
- Private PSEs That Are Regulated or Supervised
- Private PSEs under the supervision of KOMINFO or other governmental bodies as stipulated by law.
- Private PSEs with Portals, Websites, or Network Applications
- Trade of Goods/Services: Managing and operating the trade of goods or services.
- Financial Services: Providing financial transaction services.
- Paid Digital Content Distribution: Sending paid digital content via downloads, emails, or applications.
- Communication Services: Operating communication platforms, including messaging, voice/video calls, and social media.
- Electronic Information Providers: Offering electronic information services in various formats (text, audio, images, video, etc.).
- Personal Data Processing: Processing personal data for operations involving electronic transactions.
- Foreign PSEs. Foreign entities established under foreign law or domiciled overseas but meet the following criteria:
- Provide services within Indonesia.
- Conduct business in Indonesia.
- Use or offer their electronic systems in Indonesia.
2. When Should PSEs Register?
Registration must be completed no later than six months after the implementation of the Risk-Based Licensing System (OSS) becomes effective.
3. Required Documents and Information
- For local PSEs
- Overview of system operations.
- Information on electronic system security.
- Details of personal data protection measures.
- Feasibility tests of electronic systems.
- For Foreign PSEs
- Identity of the Private Scope PSE.
- Identity of the company leader or responsible party.
- Certificate of incorporation or domicile documents.
- Number of customers (users) from Indonesia.
- Transaction value originating from Indonesia.
Note: Supporting documents must be translated into Indonesian by a sworn translator.
4. Obligations of Private PSEs
- Operational Responsibility: Ensure the electronic system operates reliably, securely, and responsibly.
- Usage Guidelines: Provide usage instructions for services in the Indonesian language.
- Content Security: Ensure that the electronic system does not host or facilitate the dissemination of prohibited content.
- Classification of Prohibited Content:
- Content that violates laws and regulations.
- Content that disturbs public order or causes social unrest.
- Content that provides access to prohibited material.
5. Sanctions for Non-Compliance
KOMINFO may impose administrative sanctions, including:
- Failure to Register: Sanctions apply to both local and foreign PSEs that fail to register but operate in Indonesia.
- Failure to Report Changes in Data: Changes in data such as system name, sector, website URL, data management location, and other related information must be reported.
- Providing False Information: All information submitted during the registration process must be accurate and complete.
- Types of Sanctions:
- Written warnings.
- Temporary suspension of services.
- Blocking or termination of access.
- Revocation of the PSE certificate.
Conclusion – PSE Regulation Update
Due to the updated PSE Regulation, applying for a private PSE certificate could be a time-consuming task. However, you can save your time by hiring a trusted legal service consultant to do the hard work. If you want to minimize the risk of making unnecessary mistakes, Permitindo is the right consultant for your consideration and will guide you throughout the whole process. Feel free to contact us by filling out the form below. Our team will get back to you shortly.
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