In 2022, based on the data of the Central Bureau of Statistics, 66.48% of the Indonesian citizens have accessed internet. This number have increased by 4.38% from the number in 2021. Such rise of the internet utilization shows that electronic data and information has became the basic need in Indonesia. At the same time, technology has been developing progressively worldwide. Transboundary transactions are inevitable. Moreover, data and information being accessible to any person regardless of his age. Therefore, the Government of Indonesia issued the Second Amendment of Law No. 11 of 2008 on Electronic Information and Transaction on January 2nd 2024 which one of the objectives is to provide clearer regulatory framework on the distribution of electronic data and information. Find out more our insights about this topic in our Legal Brief Publication.

1. Legal Brief
Second Amandement to the Law No.
11/2008: Streghtening Legal Protection and
Certainty of Transboundary Transaction and
Electronic Data Utilization
APRIL, 2024

2. BACKGROUND
A H R P L e g a l B r i e f
In relation to electronic information and transaction, the Government of Indonesia have the obligations as follow:
to facilitate the utilization of information technology and electronic transaction;
to protect the public interest from any type of disruptions as the result of information technology misuse that disrupt public order;
to encourage the creation of ecosystem digital which are fair, accountable, safe, and innovative; and
to prevent the dissemination and utilization of electronic information and/or electronic document which its content violate the laws and
regulations.
• On 2nd January 2024, the Government of Indonesia enacted Law No. 1 of 2024 as the second amendment of Law No. 11 of 2008
on Electronic Information and Transactions (“Law No. 1/2024”). Therefore, the of Law No. 11 of 2008 on Electronic Information
and Transactions has been amended twice, the first one is by Law No. 19 of 2016 (“Law No. 19/2016”) and the second one is by
Law No. 1of 2024 (simultaneously referred to as “Law No. 11/2008”).
• There are several reasons that causes the amendment of Law No. 11/2008: namely:
a. There are objections submitted by the people
in the society to several criminal provisions
under The Law No. 11/2008 for judicial
review in the Constitutional Court.
Overview for the Related Parties Governed under Law No. 11/2008
Electronic Certification Provider/Penyelenggara Sertifikasi Elektronik (‘PSrE”)
Electronic System Organizer/Penyelenggara Sistem Elektronik (“PSE”)
Government of the Republic of Indonesia
▪ PSrE is a legal entity that serves as a trustworthy party, which provides and audits electronic certificates.
▪ PSrEs must ensure the relationship of an electronic signature with its owner.
▪ PSrEs operating in Indonesia must be Indonesian legal entities and domiciled in Indonesia. This stipulation is exempted in the event that
the provision of services using electronic certificates is not yet available in Indonesia.
▪ Mutual recognition to recognize electronic certificates between countries is based on cooperation agreements, namely agreements
between PSrEs or between governments whose PSrEs will carry out mutual recognition, both bilaterally and multilaterally
▪ PSrEs can provide services in the form of: (i) electronic signature; (ii) electronic seal; (iii) electronic timekeeping; (iv) registered electronic
delivery services; (v) website authentication; (vi) preservation of electronic signatures and/or electronic seals; (vii) digital identity; and/or
(viii) other services that use electronic certificates.
▪ PSE is every person, state administrator, business entity, and community who provides, manages, and/or operates an electronic system,
either individually or jointly to the users of the electronic system for their own needs and/or the needs of other parties.
▪ PSE is obliged to provide protection for children who use or access the electronic system. Protection of children's rights is a priority for
PSEs compared to the commercial interests of PSEs.
Elucidation of Law No. 11/2008
Art. 1 (10) jo. 13 (2) Law No. 11/2008 jo 13 (3) jo. 13 (4) jo 13 (5) jo 13A Law No. 11/2008
Art. 1 (10) jo. Art. 16A (1) jo. Elucidation of Art 16A (2) Law No. 11/2008
Art. 40 (1) jo. 40 (2) jo. 40A jo. 40 (2a) Law No. 11/2008
b. The Law No. 19/2016 does not
solve the issues that had been
arisen in relation to information
technology and electronic
transaction; and
c. There are several articles which are multi-
interpretation which such different
understanding may cause the subjects who
are not supposed to be imposed by such
articles, are subject to the relevant
provisions.

3. Form of Legal Entity
for PSrE
Mutual Recognition of
Cross Border
Electronic Certificates
Electronic Signatures
for High-Risk Electronic
Transactions
Electronic Evidence
PSrE must be an Indonesian legal entity and domiciled in Indonesia. However, this
stipulation is exempted if the service using electronic certificates is not yet
available in Indonesia.
Electronic transactions with a high level of risk require the use of electronic
signatures secured by electronic certificates. However, Law No. 11/2008 does not
provide the elucidation on what is construed as electronic signatures secured by
electronic certificates.
Subsequently, what is meant by high-risk electronic transactions include, among
other things, financial transactions that are carried out without physical face-to-
face interaction. However, the aforementioned stipulation does not specify the
scope of financial transactions that have to be conducted with the use of certified
electronic signature.
Mutual recognition to recognize electronic certificates between countries is based
on cooperation agreements, namely agreements between PSrEs or between
governments whose PSrEs will carry out mutual recognition, both bilaterally and
multilaterally.
This provision emphasizes that electronic information and/or electronic
documents are valid legal evidence to be used in and an extension of the types of
evidenced regulated under the Indonesian Criminal Code.
Art. 5 (1) jo. Art. 5 (2) Law No. 11/2008
Art. 13 (3) jo. Art 13 (4) Law No. 11/2008
Art. 13 (5) Law No. 11/2008
Art. 17 (2a) Law No. 11/2008
KEY CHANGES ON THE RELEVANT
PROVISIONS (1/4)
A H R P L e g a l B r i e f

4. Indonesian Law as
Governing Law in
International Electronic
Contracts
Online Child Safety • PSE shall protect children who use or access the electronic system.
• The relevant protection is applicable to the children’s rights for utilizing
products, services, and features which are developed and established by PSE.
• To provide the relevant protection to children the PSE shall provide (i)
information of the minimum age to use the PSE’s products and services, (ii)
mechanism verification of children’s age, and (iii) reporting mechanism on the
misuse of products, services, and features which violate, or it can be
potentially violate the children’s right.
• There are administrative sanction that can be imposed to the PSE who
violates the obligation to protect children’s safety when using the relevant
technology products and services, namely (i) a warning letter, (ii)
administrative penalty, (iii) temporary suspension, and/or (iv) disconnection of
access.
Art. 16A and 16B Law No. 11/2008
An international electronic contract which regulates about an electronic system
provided by an PSE, which includes standardised clauses (klausula baku), must
be governed by Indonesian law if one or all of the following conditions are
fulfilled, namely:
i. the user or consumer of the relevant electronic system (as one of the party
in the contract) is Indonesian and he gives his approval to use Indonesian
law as the governing law within the Indonesian territory,
ii. the place where the international contract is signed is withing the
jurisdiction of Indonesia, and/or
iii. the place where relevant electronic system organizer conducts its business
activity is in the Indonesia’s territory or the electronic system organizer
conducts its business activities in Indonesia.
KEY CHANGES ON THE RELEVANT
PROVISIONS (2/4)
Art. 18A Law No. 11/2008
A H R P L e g a l B r i e f

5. Prohibited Actions There are several additional types of prohibited actions under the second amendment,
namely:
• publishing and/or showing electronic information and/or electronic document
which violates morality with the aim is for such content to be known publicly;
• defamation in the form of deliberate action and without any right, to assault the
other people’s dignity or good name by accusing certain matters so that such
information is known by public in the form of electronic information and/or
electronic document which are distributed by electronic system;
• distributing and/or transmitting electronic information and/or electronic
document deliberately and without any right, for individual or other people
interest by tort, by forcing others through physical threat to:
i. give goods, which part or whole part of such good is owned by such
person or other person; or
ii. provide some loan, make debt acknowledgement letter or to deface
receivables;
• distributing and/or transmitting electronic information and/or electronic
document deliberately and without any right, for individual or other people
interest, by tort, threat of defamation or by threat of disclosure of some secrets
which forces others to :
i. give goods, which part or whole part of such good is owned by such
person or other person; or
ii. provide some loan, make debt acknowledgement letter or to deface
receivables;
• distributing and/or transmitting electronic information and/or electronic
document deliberately which contains false notification or misleading
information which causes material loss for consumers under electronic
transaction;
• distributing and/or transmitting electronic information and/or electronic
document deliberately and without any right through actions to persuade,
engage, or influence others which the aim is for causes hate or hostility to
individual and/or certain groups based on ethnicity, nationality, skin color,
religion, belief, gender, mental disability, or physical ability;
• distributing and/or transmitting electronic information and/or electronic
document deliberately which such person knows that the information contains
false information that may cause riot in the society.
Any violation of the above actions by any person will cause such person to be imposed
by sanctions in the form of imprisonment, maximum of 6 (six) years and/or fine,
maximum of Rp,1,000,000,000, depending on the type of the violation for the prohibited
actions.
Art. 27 jo 27A jo 27B jo 28 jo 29 jo 36 jo 45 jo 45A Law No. 11/2008
KEY CHANGES ON THE RELEVANT
PROVISIONS (3/4)
A H R P L e g a l B r i e f

6. to adjust the relevant
content independently
to the relevant access
Government’s
Supervision Role
in the Digital
Ecosystem
to facilitate the utilization of information
technology and electronic transaction
to protect the public interest from any
type of disruptions as the result of
information technology misuse that disrupt
public order
1
2
to encourage the creation of
ecosystem digital which are fair,
accountable, safe, and innovative
to prevent the dissemination and
utilization of electronic information and/or
electronic document which its content
violate the laws and regulations.
3
4
Order PSE to adjust
the electronic system;
and/or
Order PSE to do
particular actions
Administrative
Sanctions will be
imposed to PSE if the
PSE does not execute
the relevant order
3a
3b
by disconnecting the relevant access to the relevant
electronic information and/or electronic documents
ordering the PSE to disconnect the relevant access
to the relevant electronic information and/or electronic
documents
4a
4b
Types of Electronic Information and Electronic Documents
Other relevant content as
regulated under laws and
regulations
porn gambling
Other relevant content as
technologically feasible
Dangerous for individual’s
and society’s health and life
Art. 40 (2) Law No. 11/2008
Art. 40 (1) Law No. 11/2008
Art. 40 (2a) Law No. 11/2008
Art. 40A Law No. 11/2008
Types of Order to PSE
Types of Order to PSE
Art. 40 (2b) Law No. 11/2008
Art. 40 (2c) jo (2d) Law No. 11/2008
Prior to the 2nd Amendment
Applicable to both order to disconnect and content adjustment
New Provisions
Applicable to order to content adjustment
KEY CHANGES ON THE RELEVANT
PROVISIONS (4/4)
A H R P L e g a l B r i e f

7. Overview Electronic Contracts
Electronic Signatures Liability of Network Services Provider
Use of Electronic Records and Signatures by Public Agencies
The Singaporean government has legislated the Electronic
Transactions Act of Singapore (“ETA Singapore 1998”) in July 1998.
Then, ETA Singapore 1998 was amended in 2010 and 2021.
ETA Singapore 1998 aims to provide legal foundation for electronic
transactions and give certainty to contracts formed electronically.
However, initially, ETA has not governed about electronic signature
and electronic commerce yet.
As the international trade grows continuously, the latest amendment of
ETA Singapore 1998 in 2021 aims to facilitate the needs of the use of
technology for inter-boundaries transactions. The current ETA
Singapore 1998 also has adopted the UNICTRAL Model Law on
Electronic Transferable Records.
Legal Effect - Information in an electronic record has equal legal
effect, validity and enforceability with the information in other writing
forms. Therefore, if there is a requirement by law to provide any
information to be written, in writing, to be presented in writing, or
provides for certain consequences, an electronic record shall satisfy
the relevant requirement if such electronic record is accessible so as
to be usable for subsequent reference. However, the parties may, by
agreement, exclude the application of this provision.
Requirement of Signature - If a document or a record in electronic
form is not signed, but there is a requirement that such document or
record shall have been signed, then the signature requirements is
fulfilled if after evaluation using the relevant method which are (i)
reliable and appropriate for the purpose for which the electronic
record was generated; or (ii) proven to have fulfilled the function in
point (i), by itself or together with further evidence.
Validity of Contracts - In the context of the formation of contracts,
an offer and the acceptance of an offer may be expressed by means
of electronic communications. In this case, such contract is valid and
enforceable equally with a formation of contract made in person.
However, the parties may, by agreement, exclude the application of
this provision.
If through the specified or a commercially reasonable security
procedure, an electronic signature was, at the time it was made:
a. unique to the person using it;
b. capable of identifying such person;
c. created in a manner or using a means under the sole control of the
person using it; and
d. linked to the electronic record to which it relates in a manner such
that if the record was changed the electronic signature would be
invalidated,
such signature is treated as a secure electronic signature.
A network service provider shall not subject to any civil or criminal
liability under any rule of law in respect of third-party material in the form
of electronic records to which the network service provider merely
provides access if such liability is founded on:
a. the making, publication, dissemination or distribution of such
materials or any statement made in such material; or
b. the infringement of any rights subsisting in or in relation to such
material.
www.imda.gov.sg jo. Preamble of ETA
Art. 18 ETA Singapore 1998 Art. 26 (1) ETA Singapore 1998
Art. 25 (1) ETA Singapore 1998
Art. 7 jo. Art. 11 jo. Art 5 (3) ETA Singapore 1998
a
b
c
d
a
b
Any public agency that, pursuant to any written law:
a. accepts the filing of documents, or obtains information in any form;
b. Requires that document be created or retained;
c. Requires documents, records, or information to be provided or retained in their original form;
d. Issues any permit, license or approval; or
e. requires payment of any fee, charge or other amount by any method and manner of payment,
may despite anything to the contrary in such written law, carry out that function by means of electronic records or in electronic form.
a
b
c
d
e
A COMPARISON: ELECTRONIC INFORMATION AND
TRANSACTION UNDER SINGAPORE REGULATORY FRAMEWORK
A H R P L e g a l B r i e f

8. A COMPARISON: ELECTRONIC INFORMATION AND
TRANSACTION UNDER EU REGULATORY FRAWEWORK
Overview
Internal Market Principle Electronic Identification
Electronic Signatures, Electronic Seals, and
Electronic Documents
For the member countries of the European Union (“EU”), electronic
transaction is mainly regulated under the EU Regulation No.
910/2014 on Electronic Identification and Trust Services for Electronic
Transactions in Internal Market (“EU Reg. 910/2014”).
The EU Reg. 910/2014 repealed the Directive 1999/93/EC which
regulates the same matters. The EU Reg 910/2014 aims to build
trust, legal certainty, and secure environment for consumers,
business and public authorities when carrying out electronic
transaction by Electronic Identification Scheme and Trust Service in
the internal market of the EU.
In comparison with the Directive 1999/93/EC, the EU Reg. 910/2014
regulates in more detail about cross-border and cross-sector
framework of the use of electronic signature.
Electronic Identification Scheme is a system for electronic
identification under which Electronic Identification Means are issued to
natural or legal persons, or natural persons representing legal
persons.
Electronic Identification Means is a material and/or immaterial unit
containing person identification data and which is used for
authentication for online service.
Trust Service is an electronic service normally provided for
remuneration which consists of:
a. the creation, verification and validation of electronic signatures,
electronic seals or electronic time stamps, electronic registered
delivery services and certificates related to those services; or
b. the creation, verification and validation of certificates for website
authentication; or
c. the preservation of electronic signatures, seals or certificates
related to those services.
Principally, the Trust Service provider in the territory of a member
state in the EU may provide Trust Service to the other member states’
territory without any restriction to the extent that such services are
complied with the EU Reg. 910/2014.
Therefore, products and Trust Service that comply with EU Reg
910/2014 shall be permitted to circulate freely in the internal market.
When an electronic identification using an Electronic Identification
Means and authentication is required under national law or by
administrative practice to access a service provided by a public sector
body online in one member state, the Electronic Identification Means
issued in another member state shall be recognised in the first
member state for the purposes of cross-border authentication for that
service online, to the extent that:
a. the Electronic Identification Means is issued under an Electronic
Identification Scheme that is included in the list published by the
European Commission;
b. the assurance level of the Electronic identification means
corresponds to an assurance level equal to or higher than the
assurance level required by the relevant public sector body to
access that service online in the first member state (the relevant
level is classified as substantial or high); and
c. the relevant public sector body uses the assurance level
substantial or high in relation to accessing that service online.
Such recognition shall take place no later than 12 months after the EU
commission publishes the list referred in point a above.
An electronic signature, electronic seals, and/or electronic
documents have equal legal force and is admissible as evidence in
the legal proceedings.
A qualified electronic signature and electronic seals are issued
based on a qualified certificate issued in one member state of the
EU. Once an electronic certificate is issued in one member state to
qualify the relevant electronic signature and/or electronic seals, then
such qualified electronic signature and/or electronic seals shall be
recognized as a qualified electronic signature and/electronic seals in
all other member states.
The electronic signature shall be made by a qualified electronic
signature creation devices that has been certified by public or private
bodies designated by member states.
Par. 1 jo. 2 jo. 3 of the Preamble of and Art.1 jo. Art. 2 (1) EU Reg. 910/2014 Art. 3 (2), (4), and (16) EU Reg. 910/2014
Art. 4 EU Reg. 910/2014
Art. 6 EU Reg. 910/2014
Art. 25 jo. Art. 30 jo. Art. 35 jo. Art. 39 (2) jo. Art. 46 EU Reg. 910/2014
a
b
c
A H R P L e g a l B r i e f

9. Overview
In Australia, the first act which regulates about electronic transaction
was issued in 1999 by Act No.162 of 1999 on Electronic Transaction
Act. The law then was amended by Act No. 33 of 2011
(“Commonwealth ETA 1999”).
The objectives of Commonwealth ETA 1999 are to provide a
regulatory framework that:
a. recognises the importance of the information economy to the
future economic and social prosperity of Australia;
b. facilitates the use of electronic transactions;
c. promotes business and community confidence in the use of
electronic transactions; and
d. enables business and the community to use electronic
communications in their dealings with government.
The following requirements imposed under a law of the
Commonwealth can be met in electronic form:
a. a requirement to give information in writing;
b. a requirement to provide a signature;
c. a requirement to produce a document;
d. a requirement to record information; and
e. a requirement to retain a document.
Each state and territory has its own Electronic Transaction Act,
which generally mirrors the Commonwealth ETA 1999.
Requirements related to the Electronic Transactions
Validity of Electronic Transactions – a transaction which are made by electronic communication either wholly or partly is a valid transaction.
Requirements of Electronic Signature are namely:
a. In all cases, there is a method used to identify the person and to
indicate the person’s intention in respect of the information
communicated; and
b. In all cases, the method used was either:
i. as reliable as appropriate for the purpose for which the
electronic communication was generated or communicated,
in the light of all the circumstances, including any relevant
agreement; or
ii. It is proven that it has fulfilled the functions described in
paragraph (i), by itself or together with further evidence; and
c. In accordance with the method used in paragraph (a) which inline
with particular information technology requirements, as required
by the relevant entity and such requirement has been met, if the
information is permitted to be given to a Commonwealth entity, or
to a person acting on behalf of a Commonwealth entity; and
d. If the signature is required to be given to a person who is neither a
Commonwealth entity nor a person acting on behalf of a
Commonwealth entity—the person to whom the signature is
required to be given consents to that requirement being met by
way of the use of the method mentioned in paragraph (a).
The Requirements to Give Information in Writing by Electronic
Communication are Namely:
a. In all cases, it is expected that the information would be readily
accessible and usable for subsequent reference at the time
when the information was given;
b. In accordance with a particular information technology
requirements, if the relevant information shall be given to a
Commonwealth entity, an authorized party acting on behalf of
a Commonwealth entity, and it is required by the relevant
company, which such requirement has been met;
c. there is a requirement for receipt verification of the relevant
information by the relevant entity, if the information shall given
to a Commonwealth entity, an authorized party acting on
behalf of a Commonwealth entity, which such requirement has
been met; and
d. If the information is permitted to be given to neither non-
Commonwealth entity nor person acting on behalf of the
Commonwealth entity, there must be a consent given by the
relevan entity or party.
Art. 3 (1) Commonwealth ETA 1999
Art. 8 (1) Commonwealth ETA 1999
Art. 10 (1) Commonwealth ETA 1999
Art. 4 Commonwealth ETA 1999 www.ag.gov.au
Art. 9 (2) Commonwealth ETA 1999
a
b
c
d
a
b
c
d
A COMPARISON: ELECTRONIC TRANSACTIONS ACT OF
THE COMMONWEALTH AUSTRALIA
A H R P L e g a l B r i e f

10. On the Recent Changes Introduced by the Second
Amendment
Law No. 1/2024 introduces new provisions aimed to enhances the
provisions of Law No. 11/2008. Law No. 1/2024 also contain changes
that have a significant impact on parties involved in digital business,
including the implementation of new obligations for business actors in
digital business. However, there are still many provisions in Law No.
11/2008 which is still awaiting the issuance of implementing
regulations. Thus, while waiting for the issuance of implementing
regulations, the business actors in the digital business sector seems
to have to start adapting to new provisions relating to compliance
aspects.
Regarding Comparison with Electronic Information and
Transaction Laws from Other Countries
The Singapore ETA 1998, EU Reg. 910/2014, and Commonwealth
ETA 1999 mainly regulates and confirm about the validity of
transactions occurs via media of electronic, including contracts.
Electronic signature are also recognized equally as hand-written
signature through qualified method of evaluation and certification.
These provisions have been regulated under the Law No. 11/2008.
On the other hand, Law No. 11/2008 govern wider aspects of
electronic transaction, such as governing language in electronic
transactions contracts, prohibited actions, and the role of the
government.
Therefore, Law No. 11/2008 essentially have been on the track of the
development of electronic information and transaction sectors.
CONCLUSION
A H R P L e g a l B r i e f

11. We will continue to follow the developments on this topic and provide additional information as it
becomes available. If you have any questions on this topic, please contact:
Adnan
adnan@ahrplaw.com
Aisyah Redita
aredita@ahrplaw.com
Muhammad Farisi
farisi@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
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