Answering Your Doubts About Digital Signatures



Digital signatures are becoming a new trend for administrators in the digital era, especially for companies that have high activity and mobility and need better security. Despite being regulated by the Indonesian government, they are still not widely used, because many people are still unsure about several issues related to this technology. These include doubts by corporations, government institutions, or individuals about security, legality and legitimacy, the process, and cost of adopting digital signatures, leading them to wonder whether it is appropriate to use digital signatures? Let's address each of these concerns in turn.


Are digital signatures safe?


The biggest doubt about digital signatures relates to security. This is quite reasonable considering the frequent occurrence of cyber crime in Indonesia. You should know that digital signatures are a safe technology because they use embedded encryption features that ensure that they cannot be faked. Moreover, digital signatures created by providers such as VIDA Sign apply a biometric verification protocol to guarantee the identity of the signatory, making the signature authentic and valid. Digital signatures also record every process and stage that occurs in electronic documents. This feature keeps documents accountable and transparent, making the digital signature difficult to forge. They are also certified by the relevant state or international institutions to meet certain security standards.


Are digital signatures legal?


Another question relates to the legal validity of digital signatures. Different countries have their own regulations regarding digital signatures. In the European Union, eIDAS is the legal guide. In the United States, there is ESIGN. Indonesia has issued several regulations, including Law No. 11 of 2008 concerning Electronic Information and Transactions, specifically Articles 5 to 12. The regulations were later developed in Government Regulation No. 71 of 2019 concerning the Implementation of Electronic Systems and Transactions and derivative regulations such as Regulation of the Minister of Communication and Information Number 11 of 2018 concerning Electronic Certification Operators. Bank Indonesia, the country’s central regulatory bank, and the Financial Services Authority (OJK), also have their own regulations.


Is implementing a digital signature complicated?


Some people believe that administering digital signatures is not easy or user-friendly. It is quite true that not everyone has the same technological ability, so education is crucial to implementing digital signatures. But once you understand how to use them, you will realize that they actually provide a lot of convenience because they can be used anytime and anywhere. Digital signatures can streamline the approval process for documents, files and agreements in just a few minutes, because they obviate the need for face-to-face meetings and document couriers.


Is it true that digital signatures aren't for everyone?


Digital signatures can be used by anyone who needs a valid and accountable agreement representative, whether individuals, private institutions, or government agencies. It must be noted, however, that digital signatures are digital-based technologies that require special devices, so they are not fully accessible to someone who has no internet access or personal computer device.


Is it possible to use a digital signature for all documents?


What documents can be signed using a digital signature? In principle, any electronic document you wish! However, several countries and regulators state that digital signatures cannot be used for some sensitive documents such as documents that require face-to-face testimony and the presence of legal representatives without exception. Currently, digital signatures are being used by technology and banking companies, which handle a lot of financial transactions. Companies engaged in international trade, which traditionally waste a lot of time waiting to physically send transaction documents, are also starting to make use of digital signatures. Meanwhile, from the government side, digital signatures provide more accountability and help to improve the quality of the public services they provide.


Are digital signatures really more expensive?


Another issue is cost. Many people think that using a digital signature will cost more. In fact, by using a digital signature, you and your company can save costs and increase productivity. Imagine, for example, how much money your company will spend in filing costs when using a wet signature - not to mention procurement of paper, printing equipment, ink and so on. With a digital signature, none of that is necessary. Using a digital signature is also worth it when you consider the increased productivity thanks to the time savings. You can process documents more quickly, and transactions can happen instantly.


Conclusion


It can be concluded, then, that in general digital signatures are a technology that you should consider. They offer many positive benefits for you and your company, or agency. So, are you interested in making the switch to digital signatures? For more information and advice on how we can help your company, contact VIDA today.







Read: Compelling Reasons to Switch to Digital Signatures

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