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Regulatory Alert : Amendments to Indonesia’s IET Law: Clarifying Prohibited Acts and Enhancing Legal Framework
AMENDMENTS TO INDONESIA’S IET LAW: CLARIFYING PROHIBITED ACTS AND ENHANCING LEGAL FRAMEWORK
Setyawati Fitrianggraeni, Sri Purnama, Jericho Xavier[1]
BACKGROUND
On November 22, 2023, Indonesia’s House of Representatives approved the Draft Bill for the Second Amendment to Law No. 11 of 2008 on Electronic Information and Transactions (Law 11/2008), previously amended by Law No. 19 of 2016.[2] This Bill offers a comprehensive framework to resolve ambiguities and controversial areas in the existing law, aligning with the national criminal law framework of Law No. 1 of 2023 on the Criminal Law Code.
KEY AMENDMENTS
The Draft Bill introduces 14 updated provisions and five additional electronic information and transactions articles. Key adjustments include:
- PSrE (Penyelenggara Sertifikasi Elektronik): The amendment redefines the legal status of PSrE, an entity providing electronic systems, to ensure more precise operational boundaries and responsibilities. It also offers detailed definitions of the services that PSrEs are expected to provide, aiming for greater transparency and accountability in their operations.[3]
- Additional Mandate for PSrE: The Bill introduces specific obligations for PSrE to safeguard the interests and safety of child users. This includes implementing age verification systems, content filtering, and other protective measures to shield children from harmful content and ensure their online safety.[4]
- International Contracts: The amendment mandates that all international contracts involving electronic information and transactions include standard clauses that adhere to Indonesian laws. This requirement ensures that such contracts respect local legal norms and provide a legal framework for resolving disputes arising from international electronic transactions.[5]
- Additional Law Enforcement Measures: The Bill grants broader powers to government authorities for content moderation. This includes the ability to remove or block access to digital content deemed illegal or harmful under Indonesian law, reflecting a more assertive stance on regulating online content.[6]
- Adjusted Prohibitions: The amendment revises existing prohibitions related to electronic information and transactions, aligning them with the digital landscape. It also updates the corresponding criminal sanctions, ensuring that the penalties are appropriate and effective in deterring illegal activities in the digital domain.[7]
IMPLICATION
The Bill’s introduction signifies a significant shift in Indonesia’s legal landscape governing electronic information and transactions. It addresses critical areas like child protection, international contract governance, and law enforcement measures, impacting businesses and individuals engaged in digital activities.
CONSIDER
Entities operating in Indonesia’s digital and electronic information sector must review and align their practices with the new provisions. Special attention should be paid to the protection of child users and .[8] Compliance with the evolving legal framework is crucial to avoid potential legal repercussions.
CONCLUSION
The Draft Bill on the Second Amendment to the IET Law marks a pivotal move towards refining Indonesia’s digital legal framework. Its approval will necessitate proactive adjustments in the operational strategies of electronic information and transaction entities. Ongoing vigilance and legal consultation are advised to ensure full compliance with the new regulations.
[1] Setyawati Fitrianggraeni holds the position of Managing Partner at Anggraeni and Partners in Indonesia. She also serves as an Assistant Professor at the Faculty of Law, University of Indonesia, and is currently pursuing a PhD at the World Maritime University in Malmo, Sweden. This article is co-authored by Sri Purnama, Junior Legal Research and Jericho Xafier Ralf, Trainee Associate Analyst at Anggraeni and Partners.
[2] The Draft Regulation referenced in this document pertains to the version dated 4 December 2023, as obtained from the hukumonline website, accessible at https://www.hukumonline.com/pusatdata/detail/lt6567c84249e8b/rancangan-undang-undang-tahun-2023. Please note that subsequent amendments or updates to the Draft Regulation may have occurred after this date. Readers are advised to consult the latest version of the document for the most current information.
[3] Article 5, Article 13, and Article 13A of the Information and Electronic Transaction Draft Bill 2023 (IET Draft Bill).
[4] Article 16A of the IET Draft Bill.
[5] Article 18A of the IET Draft Bill.
[6] Article 40 of the IET Draft Bill.
[7] Article 40A, Article 43, Article 45, Article 45A, and Article 45B of the IET Draft Bill.
[8] See, Ady Thea DA, “UU ITE Terbaru Dinilai Sebagai Milestone Indonesia Menuju Kedaulatan Digital”, Hukumonline.com, https://www.hukumonline.com/berita/a/uu-ite-terbaru-dinilai-sebagai-milestone-indonesia-menuju-kedaulatan-digital-lt65700c5580959/ accessed on 8 December 2023. From the article, it is said that the use of standard clauses in electronic international contracts regulated by the entities must comply with Indonesian law, ensuring that information technology prioritises and can be used for public interests, for example the digital economy.
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S.F. Anggraeni
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Sri Purnama
Junior Legal Research Analyst
Jericho Xafier Ralf
Junior Associate
