Indonesia Cracks Down on Worldcoin Over Biometric and Licensing Breaches

Indonesia's Ministry of Communication and Digital Affairs abruptly suspended Worldcoin's local operations, freezing both its token platform and iris-scan service

Indonesia’s Ministry of Communication and Digital Affairs has abruptly suspended Worldcoin’s local token service and iris-scan network pending a swift regulatory review and complete legal documentation. Both platforms have been ordered to stand down immediately and both platforms are now offline.

Both the token service and the so-called "World ID" biometric network have been suspended and ordered to stop providing services immediately, according to a statement released on Wednesday. Both platforms are now offline.

This move comes after officials expressed concern over reports that local partners had failed to register the services as required under the Electronic System and Transactions Law No. 19/2019 and had also misused official certificates.

"The ministry has met with local partners of Worldcoin to discuss the matter further and to collect complete data and documentation related to the reported legal violations," the statement read.

"We are investigating potential infractions of the Electronic System and Transactions Law and the Mineral, Coal, and Energy Law, and we are also examining the matter of credential misappropriation, which are serious offenses that carry legal consequences."

Officials stressed that this is a protective, temporary halt to operations—not a ban—intended to shield consumers while potential infractions are investigated.

"This is a decisive action taken to safeguard the public interest and ensure that all operating private electronic system providers comply with prevailing regulations in order to foster a healthy and trustworthy digital ecosystem in Indonesia."

The ministry is planning to hold further hearings with the partners—identified as PT Terang Bulan Abadi and PT Sandina Abadi Nusantara—to discuss the matter in detail.

According to local reports, Terang Bulan Abadi did not have any registration as a Private Electronic System Operator (PSE) and Sandina Abadi Nusantara’s certificate was used for both a crypto exchange and a biometric identity offering.

Any private digital service in Indonesia is required to register as a PSE and obtain an Electronic System Operator Registration Certificate (TDPSE), in accordance with Government Regulation 71/2019 and related ministerial rules.

However, several reports in recent months suggest that a large-scale deployment of Worldcoin’s iris-scanning activity may have begun in Indonesia without the legal documentation in place.

This has prompted concern among local consumer groups, who fear that users may be trading sensitive biometric scans for tokens without clear guarantees on data handling, deletion, or deletion protocols.

Highlighting the global unease over privacy and data protection in emerging technologies, similar issues have also been raised in Kenya, Hong Kong, Spain, and Portugal, leading to a moratorium on Worldcoin’s activities in these locations.

This latest move by Indonesia further underscores a mounting global insistence that any service collecting personal biometric data must operate in accordance with transparent, accountable frameworks before it can win public trust and operate without restriction.

To clear the suspension and continue operating in Indonesia, Worldcoin must:

* Complete the registration process for its token service and World ID network as a private electronic system in accordance with prevailing regulations.

* Present documentation to verify the legal status of both platforms and ensure they are operating in accordance with Indonesian law.

* Provide information on the planned use of Mineral, Coal, and Energy Law permits and demonstrate their relevance to Worldcoin’s activities.

* Offer a clear explanation for the alleged credential misappropriation and demonstrate how both platforms will operate separately despite sharing a single registration certificate.

* Finally, regulators will likely demand a detailed overview of Worldcoin’s data handling practices, including data storage, security measures, and the process for deleting biometric data at the request of individuals.

Success in Indonesia will be crucial for Worldcoin to clear outstanding issues and continue operating in Southeast Asia. It will also serve as a blueprint for the company to navigate other markets where it faces difficulties, such as Spain and Portugal, and ultimately to prove the viability of its vision of a global, privacy-centric identity layer.

Despite the setback, Worldcoin is pressing ahead with its ambitions to build a large-scale biometric identity network. The company says it has already signed up more than 2 million people for its Worldcoin token and iris-scan service in several countries around the world.

It hopes to use the blockchain to create a new type of "planetary currency" that can be used by anyone in the world, regardless of their bank account or credit score.

To use the currency, people must have their irises scanned and register their identity with the blockchain. The company says the biometric data is encrypted and can only be accessed by the user.

However, critics have raised concerns that the company is collecting sensitive personal data without the consent or knowledge of users. They also worry that the company’s technology could be used for surveillance or to track people’s movements.

In response to these concerns, Worldcoin says it is committed to protecting the privacy and security of its users’ data. The company says it complies fully with all applicable laws and regulations.

It remains to be seen how quickly Worldcoin can adapt to meet the demands of the