A new draft government regulation on the implementation of electronic systems and transactions (Draft Government Regulation) is being considered, which will replace Government Regulation No. 82 of 2012 (GR 82). The discussion on the Draft Government Regulation started as an amendment to GR 82 but now GR 82 will be revoked and replaced. So the Draft Government Regulation includes more extensive provisions, and includes:
1. a new concept of Public and Private Electronic System Operators
2. new data localization requirements for Public Electronic System Operators
3. provisions on electronic certificates and electronic reliability certificates
4. a new scope of electronic certification services
Electronic System Operators
The Draft Government Regulation classifies electronic system operators into public and private.
Public Electronic System Operators are state institutions or other institutions appointed by a state institution that operate an electronic system. Private Electronic System Operators are persons, business entities or communities that operate an electronic system.
Data localization requirements for Public Electronic System Operators
There is no longer the concept of "public services" under the Draft Government Regulation. Based on the Draft Government Regulation, only Public Electronic System Operators must place their electronic systems in Indonesia.
Private Electronic System Operators can place their electronic systems and data in or outside of Indonesia, unless otherwise regulated. However, Private Electronic System Operators must allow "supervision" by government agencies, including granting access to the electronic systems and data for monitoring and law enforcement purposes (all of which will be subject to further implementing regulations).
All electronic transactions must use an electronic certificate issued by a certified Indonesian electronic certification operator. In addition, the electronic transaction may use a reliability certificate issued by a registered Indonesian reliability certification institution. These requirements were stated in GR 82. However, these requirements were subject to further implementing regulations, and until today, there is no further regulation. We expect that with the issuance of the Draft Government Regulation, further steps will be taken to ensure that the necessary framework is in place to authenticate and validate electronic transactions.
Electronic certification services
Under the Draft Government Regulation, electronic certification services cover:
1. electronic signature
2. electronic seal
3. electronic time maker
4. recorded electronic delivery service
5. website authentication
6. preservation of electronic signature or electronic seal
Further implementing regulations on the above matters are required.
The Government is finalizing the Draft Government Regulation. However, there has been no official announcement on the exact issuance date. With the upcoming reshuffle in the Cabinet, we expect that the Draft Government Regulation will not be issued until after October 2019.