UPDATE: DRAFT IMPLEMENTING REGULATIONS OF INDONESIA PERSONAL DATA PROTECTION LAW
インドネシア法弁護士
フィエスタ ヴィクトリア
Private electronic systems operators (“Private ESOs”) – essentially mean companies who operate digital platforms or apps that conduct or provide any of the services listed down below are required by the Indonesian the Ministry of Communications and Information Technology (“MOCI”) to, either making registrations under the MOCI Regulation No.5/2020[1] or running the risk of getting their platforms blocked or being sanctioned by the MOCI.
This mandatory registration requirement applies NOT ONLY to local Private ESOs, but also to foreign Private ESOs - established and subject to foreign law, or permanently domiciled outside Indonesia, that:
There is no further elaboration on and specific thresholds set for foreign Private ESOs that would be subject to the registration requirement. This means that any foreign Private ESOs that fall into the above criteria must be registered in Indonesia, regardless of scale, potential risk, or type of activity.
The requirement is intended to ensure that consumer data is safeguarded by service providers utilizing digital platforms, website or apps to provide stronger internet user protection including consumer protection, user personal data protection, as well as protection of a safe digital space and privacy.
MOCI Regulation No.5/2020 broadly defines Private ESOs as persons, business entities or communities that operate an electronic system. Further the regulation elaborates that Private ESOs include:
Failure to comply with the mandatory registration requirement could leave a Private ESO liable to administrative sanction, including blockage of access.
In a circular letter issued and published in June 2022[2], MOCI announced that that private ESOs must register themselves to the Ministry by 20 July 2022. Before the circular letter was issued there had been uncertainty regarding the deadline for the registration.
As of today, there are many foreign Private ESOs that have not registered their platforms. News on August 1, 2022 reported that PayPal (one of the most famous online payment providers) was temporarily blocked by MOCI before it then finally completed its registration[3] . We believe that MOCI will continuously impose a sanction to other Private ESOs who have not complied with the registration requirement, presumably starting with the ones with huge popularity.
Therefore, we suggest that all companies that fall within the above Private ESOs classification to review their activities and comply with this mandatory registration requirement to avoid the risk of their websites, apps, or platforms being blocked in Indonesia.
Based on the MOCI website (https://pse.kominfo.go.id/home), accessed on 29 September 2022 (at 6 pm), there are 10,437 local Private ESOs and 423 foreign Private ESOs that have completed their registration. MOCI also provide lists of foreign Private ESOs that are temporarily blocked, currently 18.
Please let us know if you have further questions or require our assistance on this matter.
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[1] Government Regulation No. 71 of 2019 on the Provision of Electronic Systems and Transactions, and MOCI Regulation No. 5 of 2020 on Private ESOs, as amended by MOCI Regulation No. 10 of 2021 (“MOCI Regulation No.5/2020”).
[2] MOCI Circular Letter No. 3 of 2022 on Effective Date for Private ESO Registration.
The information provided in this article does not, and is not intended to, constitute legal advice and is for general informational purposes only. Readers of this article should contact an attorney to obtain advice with respect to any particular legal matter.