Indonesia Regulatory Update: Highlights on the 2nd

Amendment of Law No. 11 of 2008 on Electronic

Information and Transactions (“EIT Law”)
H & A Partners

Indonesia April 17 2024

Earlier this year, Indonesia has enacted a new amendment of EIT Law through Law No. 1 of 2024 on the Second
Amendment of EIT Law (“Law 1/2024”).
In this article, we will highlight important changes of EIT Law stipulated in Law 1/2024.
1. Electronic Information and/or Document as Valid Legal Evidence
Law 1/2024 reemphasizes the admissibility of electronic evidence in Indonesian courts through minor changes in
Article 5 of the EIT Law.
In Law 1/2024, the amended Article 5 of EIT Law is given further description where it states that the “Electronic
Information and/or Document is binding and recognized as valid evidence to provide legal certainty regarding
the Implementation of Electronic Systems and Electronic Transactions, especially in evidence and matters
relating to legal actions carried out through Electronic Systems.”
Law 1/2024 also adds further elaboration that electronic evidence obtained through interception and/or
wiretapping may only be admitted in court if such activities were carried out as part of legal enforcement through
the request of police, prosecutor’s office and/or other institutions with authorities given by laws.
2. Electronic Certification Provider Services Company
Law 1/2024 provides further details on the certification services provider company by adding Article 13A which
regulates the services that can be conducted by the electronic certification provider, as follows:
1. electronic signature;
2. electronic seal;
3. electronic timestamp;
4. electronic recorded delivery service;
5. website authentication;
6. preservation of electronic signature and/or electronic seal;
7. digital identity; and/or
8. other services that use electronic certificates.
Law 1/2024 mandates the issuance of a government regulation to regulate further on electronic certification
providers.
3. Protection For Children in Electronic System
Law 1/2024 also adds two new Articles 16A and 16B regarding additional obligations for the electronic system
provider to protect the children, who use or access electronic. Protection of children's rights is a priority for
electronic system providers compared to the commercial interests of electronic system providers. The electronic
system provider shall apply technology and operational technical measures to protect children’s rights in the use
of products, services and features by protecting the children's personal data, privacy and personal safety, whether
physical, mental or psychological, from misuse of electronic information and/or electronic documents which
violates children's rights.
Products, services and features that are developed and maintained by the electronic system provider are products,
services and features that are specifically designed to be used or accessed by children, or that may be used or
accessed by children.
Specifically, the electronic system provider must provide:
1. information on the minimum age limit for children who may use its products or services;
2. verification mechanism for child users; and
3. mechanism for reporting abuse of products, services and features that violate or have the potential to
violate children’s rights.
Violation of this protection of children obligation will incur administrative sanctions, as follows:
1. written reprimand;
2. administrative fine;
3. temporary suspension; and/or
4. access termination.
The protection of children in electronic system and its sanctions will be further regulated in a specific
government regulation.
4. Electronic Transaction and International Electronic Contract
Law 1/2024 inserts a new Article 18A regarding international electronic contract. It is stipulated that any
international electronic contracts which uses standard clauses prepared by an electronic system provider shall be
regulated by the Indonesian law provided that:
1. The user of the electronic system provider as one of the parties in the electronic transaction comes from
Indonesia and gives the approval or consent from or within Indonesian jurisdiction;
2. The place of implementation of the contract is in the territory of Indonesia; and/or
3. The electronic system provider has its place of business or conducts business activities Within the territory
of Indonesia.
The international electronic contract shall also use simple, clear and easily understood language, as well as
uphold the principles of good faith and transparency. Since the international electronic contract will be regulated
by Indonesian Law, thus Indonesian law shall apply to the dispute resolution that arises between electronic
system providers and their users.
5. Removal of Article 27 paragraph (3) and the Insertion of New Prohibitions
Being considered as the most vulnerable to misuse by authorities experts, Law 1/2024 removes the provision of
paragraph (3) in Article 27, limiting Article 27 of EIT Law to regulate only the prohibition pertaining
indecent/immoral and gambling contents.
However, Law 1/2024 also expands the restrictive articles which we summarize as follows:
 1. Article 27A, mainly pertains to the prohibition of defamation electronically;
2. Article 27B, mainly pertains to the prohibition of threats of violence/intimidation electronically;
3. Article 28, mainly pertains to false or misleading electronic information.
For the violation of these provisions, Law 1/2024 also amends Article 45 and adds Articles 45A and 45B, which,
in brief, impose criminal sanctions in the form of imprisonment of a maximum of six years and a fine of a
maximum of IDR 1,000,000,000.
6. Additional Obligations (and the expansion of authorities thereof) of the Government Republic of
Indonesia for Legal Enforcement pertaining to Electronic System
Through Article 40, Law 1/2024 also adds obligations (and expands the authorities) of the Government regarding
prohibited contents, as follows:
1. The Government shall protect the public interest from all types of interference as a result of themisuse of
electronic information and electronic transactions that disrupt public order, in accordance with provisions
of laws and regulations.
2. The Government must prevent the dissemination and use of electronic information and/or electronic
documents containing prohibited contents in accordance with provisions of laws and regulations. In
conducting prevention:
1. the Government has the authority to terminate access and/or order an electronic system provider to
terminate access to electronic information and/or electronic documents which contain unlawful
contents. Order to an electronic system provider in the form of termination of access and/or content
moderation independently of electronic information and/or electronic documents containing
pornography, gambling, or other contents as referred to in provisions of laws and regulations insofar
as it is technologically possible.
2. The Government has the authority to order an electronic system provider to moderate the content of
electronic information and/or electronic documents which contain hazardous content for the safety of
an individual’s life or public health.
3. The Government shall be responsible for encouraging the creation of a fair, accountable, secure and
innovative digital ecosystem. In order to implement this responsibility, the Government is authorized to
order any electronic system providers to make adjustments to the electronic system and/or to perform
certain measures.
Our Notes
While some might argue that Law 1/2024 does not fully accommodate the public concerns regarding ‘rubber
provision’ given the expansion of prohibitions in Law 1/2024 and the reaffirmation of the Government’s
authorities on electronic system, Law 1/2024 also provides more clarity and attention on the matters which were
not addressed clearly, which includes certification of electronic signature, electronic documents or contracts as
well as children’s status and their protection in the utilization of electronic system.
In particular for businesses and new investments, matters pertaining to the admission of electronic evidence and
certification of electronic documents and signatures are the most relevant. As such, it would be necessary to keep
our further attention to the issuance of government regulations and further implementing regulations of Law
1/2024.

H & A Partners - Steffen Hadi and Sianti Candra