Are Digital Signatures Legal in Indonesia?



Digital Signature Legality


1. Article 11 of Law Number 11 of 2008 concerning Information and Electronic Transactions, or UU ITE


A Digital Signature is a signature consisting of electronic information that is attached to, associated with or related to other electronic information which is used as a means of verification and authentication.


Digital signatures have the same legality as ‘wet’ signatures. This is confirmed in Article 11 which reads, "This Law provides a clear acknowledgment that although it is only a code, digital signatures have the same position as manual signatures in general which have legal force and legal consequences".


2. Article 59 paragraph (3) Government Regulation no. 71 of 2019 concerning the Implementation of Electronic Systems and Transactions


Digital signatures have legal force and legal consequences as long as they meet a number of requirements, namely:

  1. The digital-signature data is unique to the relevant signatory;

  2. The digital-signature data at the time of the digital-signing process is controlled solely by the signatory;

  3. Any changes to the digital signature that occur after the signing time are known;

  4. Any changes to the electronic information related to the digital signature after the time of signing can be known;

  5. There are certain methods used to identify who the signatory is; and

  6. There are certain ways to show that the signatory has given consent to the associated electronic information.


3. Article 60 Government Regulation no. 71 of 2019 concerning the Implementation of Electronic Systems and Transactions


Digital signatures are divided into two types, uncertified digital signatures and certified digital signatures. In addition to meeting the requirements as stated in Article 59 paragraph (3) in point 2A, a certified digital signature must use an electronic certificate made by the Indonesian Electronic Certification Provider (PSrE) service.


4. Government Regulation no. 80 of 2019 concerning Trading Through Electronic Systems


Article 1 of this regulation describes Electronic Systems and Electronic Contracts for trade as related to digital signatures as set out in Article 11 of Law Number 11 of 2008 concerning Information and Electronic Transactions, or the ITE Law.

  1. An Electronic System is a series of electronic devices and procedures that function to prepare, collect, process, analyze, store, display, announce, transmit, and/or disseminate electronic information.

  2. An Electronic Contract is an agreement between parties made through the Electronic System.


Electronically Signable Documents


Indonesia does not impose special restrictions on most types of documents that can be signed using digital signatures. Indonesian law does not require certain documents or transactions to use certified digital signatures.


Even so, companies that have adopted digital systems as part of their business growth are already using digital signatures to validate important company documents so they can save costs, are more flexible because they can be accessed anywhere without having to meet, and are practical. Digital signatures are usually limited to agreements or work contracts, but they can actually be used for any form of electronic document.


Electronic Certification Operator (PSrE)


The Importance of Electronic Certificates

A digital certificate is a seal or proof that electronic information is correct. Electronic certificates render documents difficult to modify without being recorded, because the electronic certificate that is manifested in the digital signature incorporates five important factors: identity, verification, authenticity, validation, and time records.


VIDA Sign Solutions For Your Business

Electronic certificates are issued by Electronic Certificate Operators (PSrE) which have been registered with the Ministry of Communication and Information of the Republic of Indonesia. As a PSrE, VIDA provides solutions for you and other related parties to use certified digital signatures to easily and securely sign various digital documents/data. Visit this page to get acquainted with VIDA and its various services.


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Read: Projected Growth of Digital Signatures over the Next Five Years

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