Indonesia Update: What is the regulatory regime for technology?

The term “technology” covers a broad range of topics in various fields, each with its own laws, regulations and implementing policies, as well as principal regulator. The current regulatory regime in Indonesia covers, among other things, e-commerce, financial technology (fintech), telecommunications, cryptocurrencies, electronic information and transactions, media and entertainment, intellectual property, artificial intelligence, and related aspects of internet usage. Indonesia is a civil law jurisdiction that does not follow court precedent in formulating laws. The Government has enacted specific laws for different areas of the technological sector, and the relevant ministries and institutions have subsequently issued implementing regulations and/or policies to further implement these laws.

The main laws governing technology in Indonesia include the following:

• Law Number 11 of 2008, as amended by Law No. 19 of 2016 on Electronic Information and Transactions (“EIT Law”);
• Law No. 36 of 1999 on Telecommunications, as amended by Law No. 11 of 2020 on Job Creation (“Telecom Law”);
• Law No. 32 of 2002 on Broadcasting, as amended by Law No. 11 of 2020 on Job Creation (“Broadcasting Law”);
• Law No. 13 of 2016 on Patents, as amended by Law No. 11 of 2020 on Job Creation (“Patent Law”);
• Law No. 28 of 2014 regarding Copyright (“Copyright Law”);
• Law No. 20 of 2016 on Trademark and Geographical Indications, as amended by Law No. 11 of 2020 on Job Creation (“Trademark Law”);
• Law No. 8 of 1999 on Consumer Protection;
• Government Regulation No. 71 of 2019 on the Implementation of Electronic Systems and Transactions (“GR 71/2019”);
• Minister of Communication and Informatics Regulation No. 20 of 2016 on the Protection of Personal Data in Electronic Systems (“MOCI Reg. 20/2016”);
• Minister of Communication and Informatics Regulation No. 5 of 2020 on Private-Scope Electronic System Providers, as amended by Minister of Communication and Informatics Regulation No. 10 of 2021 (“MOCI Reg. 5/2020”); and
• Ministry of Trade Regulation No. 50 of 2020 on Business Licensing, Advertisements, Guidance and Supervision of Business Actors in Trading Through Electronic Systems (“MOT Reg. 50/2020”).

Depending on the field of technology, the relevant regulations and their derivative regulations may differ from one another. For instance, general matters concerning telecommunications, electronic information and transactions, and online sites will be regulated primarily by the Telecom Law and the EIT Law, and their derivative regulations such as Government Regulations and regulations of the Ministry of Communication and Informatics (“MOCI”). Cryptocurrencies are regulated by a specific body under the auspices of the Ministry of Trade (“MOT”), called the Futures Commodity Trading Supervisory Body (Badan Pengawas Perdagangan Berjangka Komoditi or “Bappebti”). Bappebti regulations are formulated based on the principles of the EIT Law. Financial technologies such as online lending platforms, e-money, e-wallets, payment processors, etc. are regulated and supervised by both the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) and the Indonesian Central Bank (Bank Indonesia or “BI”).

It is also important to note that the Indonesian government has enacted Law No. 11 of 2020 on Job Creation, which introduced changes to laws on technology. It also enacted Presidential Regulation No. 10 of 2021, as amended by Presidential Regulation No. 49 of 2021, regarding Investment Sectors. This 2021 Presidential Regulation governs new foreign shareholding limitations for several business fields related to technology.

By SSEK, Indonesia, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact indonesia@transatlanticlaw.com

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