In January 2024, the government of the Republic of Indonesia issued Law No. 1 of 2024 on the Second Amendment to Law No. 11 of 2008 on Electronic Information and Transactions (“Law No. 1/2024”).
This Law No. 1/2024 is intended to overcome the multi-interpretation issues and controversies which occurred in practice on the application of the Indonesian information and electronic transactions law.
The following are several key provisions from Law No. 1/2024:
Electronic Certification Providers
There is no longer a classification for electronic certification providers between Indonesian electronic certification providers and foreign electronic certification providers. However, Law No. 1/2024 mandates that electronic certification providers who operate in Indonesia must be in the form of a legal entity and domiciled in Indonesia. Nevertheless, this requirement does not apply for electronic certification services which are not available yet in Indonesia.
Further, Law No. 1/2024 also adds a broader array of electronic certification services, including electronic signature, electronic seal, electronic time marker, registered electronic delivery service, website authentication, electronic signature and/or electronic seal preservation, digital identity, and/or other services that use electronic certificate.
Children Protection
Law No. 1/2024 requires electronic system providers to provide protection for children who use or access electronic systems. In this respect, electronic system providers are obliged to provide (i) information regarding the minimum age restriction for children who may use the products or the services, (ii) children user verification mechanism, and (iii) report mechanism of misuse products, services and features which violate or potentially violate children’s rights.
International Electronic Contracts
International electronic contracts that use standard clauses created by electronic system providers must now be governed by Indonesian law and using Indonesian language, in case of:
- the user of the services (as one of the parties in the electronic transactions) is from Indonesia and giving its consent from or in Indonesian jurisdiction;
- the place of the contract implementation is within the Indonesian territory; and/or
- the electronic system providers have business location or carry out their business activities within the Indonesian territory.
Government Intervention
As one of Indonesian government’s responsibilities to encourage the creation of a fair, accountable, safe, and innovative digital ecosystem, Indonesian government is given an authority under Law No. 1/2024 to instruct electronic system providers to make adjustments to their electronic systems and/or carry out certain actions.