Deadline for Registration of Domestic and Foreign Private Electronic System Operators Falls on 20 July 2022

Any local or foreign Electronic System Operator (ESO) with a web portal, website or online application that meets certain criteria must register its electronic system with Indonesia’s Ministry of Communications and Informatics (MOCI) through the Online Single Submission (OSS) system by 20 July 2022 or, in a worst-case scenario, face having its online access blocked throughout Indonesia.

Legal Background

This registration requirement was originally set out in MOCI Reg 5/2020¹, which stated that the deadline for registration was 24 May 2021. However, that deadline was subsequently amended by MOCI Reg 10/2021², which introduced a new deadline of six months after the effective date of implementation of the OSS Risk Based Assessment (RBA) system (the OSS RBA Effective Date). This implementation date was later confirmed by MOCI CL 3/2022³ as being 21 January 2022. In short, the amended deadline for registration with MOCI using the OSS RBA system now falls on 20 July 2022.

Unfortunately, MOCI Reg 10/2021 was not clear on the effective date of implementation of the OSS RBA system until very recently. Consequently, many companies are only now processing their Electronic System Operator Registration Certificate (known as a TDPSE) on the OSS RBA system.

The OSS RBA system began accepting registration applications from domestic ESOs in January 2022. Before then, domestic ESOs had to register with MOCI pursuant to MOCI Reg 5/2020 using a temporary online system administered by MOCI.

By issuing MOCI CL 3/2022, MOCI has confirmed that the OSS RBA system can now accept registration applications from foreign ESOs as well as domestic ESOs.

Criteria for Registering Private ESOs

Further details on the registration requirements can be found in our April 2020 bulletin on the draft of MOCI Reg 5/2020. MOCI Reg 5/2020 (as published) sets out two categories of private ESOs that must register their electronic systems with MOCI through the OSS RBA system in order to obtain a TDPSE:

1. Domestic private ESOs that:

1. are regulated or supervised by an Indonesian ministry or agency based on applicable laws and regulations; and/or
2. own a web portal, website or online application that is being used for any of the following activities:

1. to provide, manage, and/or operate offering and/or trading of goods and/or services;
2. to provide, manage, and/or operate financial transaction services;
3. to transmit paid digital materials or content through data network whether by downloading via portal or sites, transmission via electronic mails, or through other applications to the electronic system users’ devices;
4. to provide, manage, and/or operate communication services including, but not limited to, short messaging, voice call, video call, electronic mail, and conversations within network in the form of digital platform, network services, and social media;
5. to provide search engine services, electronic system provision services in the form of text, sound, picture, animation, music, video, film, and game, or a combination thereof, whether partially or entirely; and/or
6. to process personal data for operational activities serving the public related to electronic transaction activities.

Any ESO obtaining its TDPSE before the introduction of the MOCI Reg 5/2020 regime must now re-register on the OSS RBA system. However, it is unclear if the re-registration deadline is the same as that for new registrations.

2. Foreign private ESOs (ie foreign ESOs incorporated or having a permanent domicile overseas) that:

1. provide services within the Indonesian territory;
2. carry out business in Indonesia; and/or
3. have an electronic system that is being used and/or offered in the Indonesian territory.

Sanctions

MOCI CL 3/2022 states that MOCI may impose administrative sanctions on a private ESO that has not registered by 20 July 2022 by way of blocking online access to the private ESO’s electronic system. Access to the electronic system will be re-activated as soon as the registration requirement has been met.

Upon failure to re-register the ESO on the OSS RBA system, a private ESO may face administrative sanctions in the form of a warning letter, suspension of its activities, blocking of its access, and/or revocation of its TDPSE. 

Online Resources  

A list of private ESOs that have already registered with MOCI can be accessed online here (for foreign ESOs) and here (for domestic ESOs). Please reach out to your usual contact for more information and assistance with this registration requirement.

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Notes

¹ Minister of Communications and Informatics (MOCI) Regulation No. 5 dated 16 November 2020 (MOCI Reg 5/2020) regarding Private Electronic System Operators (ESOs)

² MOCI Regulation No. 10 dated 21 May 2021 (MOCI Reg 10/2021), which amended MOCI Reg 5/2020

³ MOCI Circular Letter No. 3 dated 14 June 2022 (MOCI CL 3/2022) on the Effective Date for Private ESO Registration