On December 5, the Indonesian House of Representatives passed the Revision of Electronic Information and Transactions Bill into Law (“UU ITE”). The Law seeks to create a more accountable, fair, safe, and innovative digital ecosystem in Indonesia by addressing several key areas, including child protection and international contract governance. However, the current broad scope of certain provisions under the Law introduces new uncertainty for Electronic System Providers (ESPs) operating in Indonesia, with several provisions open to varied interpretations.
The broad scope and lack of defined thresholds of several provisions, including Articles 16A, 17, and 40(A), under the Law risk imposing new compliance challenges and costs for ESPs and other stakeholders involved in electronic exchanges. Article 40A stipulates that the government has the right to ask ESPs to adjust their systems or take certain actions. ESPs found in violation of the UU ITE may be subject to administrative sanctions, including written warnings, fines, temporary suspension, or termination of access.
New implementing regulations will need to be passed for the UU ITE’s new provisions to come fully into force, which would provide greater clarity on the types of government interventions that may be conducted as well as what incidents could fall under the purview of the Law. The inclusion of ESPs in robust, multistakeholder discussions will be pivotal to ensure implementing regulations are effective without hampering innovation.
Written by: Natasya Shafira, Mario Masaya and Maya Crowden
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