Indonesia amends Electronic Information and Transactions Law

28 February 2024

On 5 December 2023, Indonesia’s House of Representatives passed the Second Amendment to the Electronic Information and Transactions Law of 2008 (“Second Amendment”) and on 2 January 2024, the President signed it into law as Law No. 1 of 2024. The first amendment to the Electronic Information and Transactions Law (“EIT Law”) was issued in 2016 and introduced key elements such as the concept of electronic system providers (“ESPs”), the right to be forgotten, the termination of access to illegal content, and clarification of criminal penalties.

The Second Amendment introduces significant changes to articles that had previously given rise to differing interpretations and public controversy. In addition, it aims to maintain the cleanliness, health, ethics, productivity, and fairness of Indonesia’s digital space. Its main objectives include ensuring legal certainty, protecting public interests, and preventing disruptions to public order that may be caused by misuse of information.

Some key changes are set out below.

Electronic certification service providers

The Second Amendment provides that electronic certification service providers (“ECSPs”) operating in Indonesia must be Indonesian legal entities domiciled in Indonesia. Foreign ECSPs were allowed prior to the Second Amendment but, from 2 January 2024, will generally not be allowed unless the service provided is a type of electronic certificate service not available in Indonesia.

An important addition in electronic certification is the introduction of a new clause on mutual recognition of electronic certificates between countries or between ECSPs. This recognition is subject to bilateral and multilateral cooperation agreements, a regulatory aspect that was previously lacking.

The Second Amendment adds additional clauses regarding the services offered by ECSPs, including electronic signatures, electronic seals, electronic time stamps, registered electronic delivery services, website authentication, preservation of electronic signatures and/or electronic seals, digital identity, and other services using electronic certificates.

Protection of children

The Second Amendment specifies that children accessing electronic systems should have their rights protected by the products, services, and features created and maintained by ESPs. This includes the protection of personal data, privacy, and the general well-being of children, including physical, mental, and psychological aspects, to prevent the misuse of electronic information. Violations of children’s rights by ESPs may result in administrative sanctions, including termination of access.

Electronic signatures and electronic contracts

Electronic transactions that pose a high level of risk to the parties involved now require the use of electronic signatures secured by electronic certificates - a new requirement that did not exist in the previous framework. An example of a high-risk transaction is financial transactions conducted without face-to-face interaction. The Second Amendment also deals with international electronic contracts.

Such contracts that use ESPs’ adhesion clauses must be governed by Indonesian law and use Indonesian dispute settlement mechanism in the event:

• the users are from Indonesia and provide their consent from or within the Indonesian jurisdiction; or
• Indonesian territory is either the place of performance, or the ESP’s place of business, or the place where the ESP conducts its activities.

Other amendments

The government must prevent the dissemination, use of electronic information, and documents whose content is prohibited. For example, the government can order ESPs to moderate content dangerous to the safety of the life or health of individuals or society, a matter not addressed in the previous law.

Other amendments concern criminal sanctions related to, among other things, decency, insult, defamation, blackmail/extortion, or threat, which refer to the provisions of the most recent Criminal Code. Other amended clauses are those relating to the dissemination of false and misleading information causing loss to consumers, threat, intimidation, and/or acts causing loss to other persons.