Foreign and local digital platforms have one month to register as an Electronic System Provider ("ESP") in Indonesia

The Ministry of Communication and Informatics ("MCI") has just announced that by 20 July 2022, it will start to enforce the ESP registration requirement. MCI stated that, upon coordination with other relevant regulators, it would terminate access to the website, platform, and application operated by foreign and domestic ESP if it fails to register its platform. ESP must register its platform through the Online Single Submission System managed by the Ministry of Investment (“OSS”). Access termination is part of the sanction imposed for violation of the registration obligation regulated under the Minister Communications and Informatics Regulation No. 5 of 2020 on Electronic System Operator for Private Purpose and its amendment (MCI 5/2020).

The MCI 5/2020 applies registration obligation to ESP offering certain services such as the trade of goods and/or services, communication, delivery of paid electronic content, payment, and ESP processing personal data. The registration is made via the OSS by disclosing certain information such as the number of active users from Indonesia, transaction value from Indonesia, and information on the processed personal data.

Initially, the MCI set the registration deadline for May 2021. However, the MCI extended the deadline because the OSS system for the registration of foreign ESP was not ready to accept a registration. The MCI has determined that the deadline for the registration of the ESP is 20 July 2022. Further, local ESP which has registered from 2015 to November 2020 is also required to re-register itself. This MCI's decision is reflected in the Circular Letter of Minister of Communications and Informatics No. 3 of 2022 on the Effective Date of Electronic System Operator for Private Purpose signed on 14 June 2022 (but yet to be made available publicly as of the date of this article).

In light of the above, we suggest local and foreign companies that fall under the category of ESPs which must register or re-register themselves with the MCI, to start the registration process. Please contact us via email at: <office@kk-advocates.com> for further information on the ESP registration. (dnk/gab)