Indonesian government requires tech companies to register with Ministry of Communication and Informatics and remove content that the government views as inciting unrest or disturbing public order
The Indonesian government announced on January 21, 2022, that all private electronic systems (PSE) providers operating in Indonesia would have to register with the Ministry of Communication and Informatics (Kominfo) by July 27, 2022. This registration applies to both domestic and foreign private PSEs that are 1) offering services within Indonesia; 2) operating and doing business in Indonesia; and/or 3) used and/or offered in the Indonesian territory. Approximately 8,700 domestic and 200 foreign private electronic systems providers had registered before the deadline
Electronic System Operator Registration
The Kominfo Regulation Number 10 of 2021 (MR 10/2021) concerning amendments to the ministry’s Regulation Number 5 of 2020 (MR 5/2020) on Private Scope Electronic System Operators originally required private PSEs to register with the ministry via an Online Single Submission Risk-Based Approach (OSS RBA)system by July 20. The requirement was later extended to July 27.
Referring to Article 9 of the MR 5/2020, registered platforms must remove content that ‘incites unrest’ or ‘disturbs public order’ within 24 hours after receiving the ministry’s instruction. If a platform ignores the order, they may be subject to tiered sanctions ranging from administrative actions such as warnings, to temporary suspension of operations or even the blocking of all services.
On July 30, the ministry blocked access to eight PSEs for failing to meet the registration deadline.
The decision sparked complaints from the public, where netizens initiated an online campaign under the hashtag #BlokirKominfo (block the ministry). The campaign organizers said that they see the licensing regulation as a breach of privacy, a tool to silence government critics, and a disservice to Indonesia's digital creators and gaming industry players who utilize many of the blocked PSEs in their professional work.
On the morning of August 2, Kominfo reopened access to Yahoo and Valve Corporation, two of the blocked PSEs, after they reportedly completed the registration process. The Ministry of Finance representative added that Steam by Valve Corporation has been registered in their system as a value-added tax collector since December 1, 2020.
Private PSEs who have registered, will need to re-register if they have not registered according to the OSS RBA system. OSS RBA is a one-stop portal for investment licensing to facilitate business players to be registered with all-level of government bodies, from city or regency, to province, and central government level. With the new system, business licenses will be categorized by a risk-based approach (low to high risk). The OSS RBA system was officially activated in August 2021, following the mandate to replace the OSS Version 1.1., as regulated by the Job Creation Law issued in November 2020. The system is managed by the Ministry of Investment/Indonesia Investment Coordinating Board (BKPM).
The list of domestic and foreign private PSEs that have been registered can be accessed through these links:
Details on how to register for private PSEs can be found in this document (in Bahasa Indonesia).
For further inquiries, PSEs can contact the Ministry of Communication and Informatics Directorate General of Informatics Application (APTIKA) at this address.