Electronic Signature Laws & Regulations - Indonesia

The use of e-signatures is widespread in Indonesia and the introduction of the Indonesian E-signature Regulations (defined below) indicates that the government is supporting and promoting their use.

Electronic and certificate-based digital signatures in Indonesia are governed by the follow E-Signature Laws (collectively, the “E-signature Regulations”):

• Law 11 of 2008 on Electronic Information and Transactions, amended by Law 19 of 2016; and Law 1 of 2024 (“EIT Law”);
• Government Regulation 71 of 2019 on the Application of Electronic Systems and Transactions (“GR 71/2019”);
• Minister of Communications and Informatics (MoCI) Regulation No. 11 of 2022 on Management Procedures for the Organization of Electronic Certification (“MoCI Regulation 11 of 2022”).

Types of Electronic Signatures in Indonesia
Indonesia’s E-signature Regulations acknowledge two types of e-signatures that are legal, admissible and enforceable in Indonesia:

1. A certified e-signature, commonly known as a digital signature. These are evidenced by a electronic certificate, issued by a registered electronic certification provider (“ECP”).\
2. Uncertified e-signatures (electronic signature). An uncertified e-signature does not involve a registered ECP. However, to be a legally and enforceable e-signature under Indonesian law, it must fulfil the E-signature Regulations.

Under the E-signature Regulations, both electronic and digital signatures have the same level of enforceability and admissibility as a “wet” signature if they meet the following requirements for validity:

1. the e-signature/e-seal source data which is the unique code generated based on the signatory’s handwritten signature must be associated only with the signatory;
2. at the time of the electronic signing, the e-signature/e-seal source data must be in the signatory’s possession;
3. any alteration to the e-signature/e-seal after signing must be traceable;
4. any alteration to any electronic information (e.g. a contract) associated with the e-signature/e-seal after the time of the signing is traceable;
5. the signatory must be identifiable based on certain methods; and
6. it can be shown that the signatory has consented to the relevant electronic information.

The E-signature Regulations do not precisely stipulate what constitutes "certain methods" in requirement 5 above, but in practice the term is interpreted to refer to encryption technology.

Additionally, the E-signature Regulations do not specify any particular documents that can only be signed using a digital signature; both electronic and digital signatures are legal, admissible and enforceable in Indonesia. However, the evidentiary value of electronic and digital signatures is different in court. The value of an electronic signature is relatively weak in comparison to a digital signature because it can be argued that it is more easily altered or forged. A digital signature issued by a registered ECP is stronger evidence that the document was executed by the relevant signer.

Additionally, the method of affixing an image of a wet signature to a document does not meet the requirements for a valid electronic signature under Indonesian law. Therefore, the use of a scanned image of a signature would not be legally valid.

Registered Electronic Certificate Providers
As discussed above, a digital signature is evidenced by an electronic certificate which must be issued by an ECP registered with the Minister of Communications and Informatics (MoCI). The list of ECPs acknowledged in Indonesia can be found at https://tte.kominfo.go.id/listPSrE/_ and currently includes the following ten providers:

1. Perusahaan Umum Percetakan Uang Republik Indonesia;
2. Balai Sertifikasi Elektronik Badan Siber dan Sandi Negara.
3. PT Privy Identitas Digital;
4. PT Solusi Net Internusa;
5. PT Indonesia Digital Identity;
6. PT Djelas Tandatangan Bersama;
7. PT Tilaka Nusa Teknologi;
8. PT Solusi Identitas Global Net;
9. PT Vipas Inovasi Teknologi; and
10. PT Digital Tandatangan Asli.

Special considerations

Transacting with Public Sector Entities
There are no special requirements or restrictions for using e-signatures with government entities in Indonesia and the use of e-signatures (and their acceptance as valid signatures) depends mainly on the policies and practices of individual ministerial departments and government institutions. One notable use case is that of the business licensing regime in Indonesia which has shifted to the Online Single Submission (OSS) system, which issues licenses in electronic form and uses e-signatures.

Use cases that generally require a traditional signature
In Indonesia, there are several use cases that generally require a traditional “wet” signature. There are also instances that require additional consideration when determining if an e-signature is legally compliant, such as when transacting with public sector entities. As the applicability of e-signatures is related to electronic information and/or electronic documents, there are also certain situations in which electronic information and/or electronic documents cannot be signed electronically. These situations include:

1. Documents that must be executed in written (hard copy) form according to the laws and regulations.
   Examples of these include, inter alia, commercial papers (e.g. cheques, bank drafts, bearer bonds, etc.), and letters which are used in criminal proceedings.
2. Documents that must be made in notarial deed form or are to be prepared by a land deed official (PPAT).
   Examples of documents that must be made in notarial deed are as follows:

• A company’s deed of establishment and articles of association (including amendments);
• Restatement of the general meeting of shareholders;
• Acquisition deeds;
• Fiduciary deeds; and
• Settlement agreements.

        The following legal actions in relation to land must be prepared by a land deed official:

• Sale and purchase;
• Land exchange;
• Grant;
• Contribution in the form of land to the company;
• Division of shared rights;
• Grant of right to build, or right to use, over the right of ownership land;
• Grant of security right over land; and
• Power to attorney to establish a security right over land.