Indonesia Temporarily Suspends Operations of Worldcoin, a Digital Identity Project

The Government of Indonesia has temporarily suspended the operations of Worldcoin, a digital identity project co-founded by OpenAI Chief Executive Officer Sam Altman.

The Ministry of Communication and Digital Technology has temporarily suspended the operations of Worldcoin and its World ID service in Indonesia, according to a report by информационное агентство ANTARA. The decision, which came into effect on May 4th, saw the suspension of registration certificates for both services and the summoning of two local companies, PT. Terang Bulan Abadi and PT. Sandina Abadi Nusantara, for clarification.

The ministry's move to suspend Worldcoin follows the discovery of suspicious activities by the service and breaches of regulatory procedures. The ministry is set to summon Terang Bulan Abadi to discuss violations discovered by the Ministry.

A preventive action has been executed for the purposes of shielding public safety against unknown risks linked with unregulated digital services.

Director General of Digital Space Supervision Alexander Sabar, announced that the Ministry of Communication and Information conducted actions based on public reports. The reports received by authorities established that Worldcoin and World ID did not follow national regulations for operations.

Preliminary findings revealed that PT. Terang Bulan Abadi had failed to obtain official status as an Electronic System Organizer. The service delivery for Worldcoin operated through authorization provided by a different company called PT. The activities run by PT. Sandina Abadi Nusantara create substantial problems regarding transparency and accountability.

Mr. Sabar elaborated on the registration requirements for private digital service providers, which are derived from Government Regulation Number 71 of 2019 and the Regulation of the Minister of Communication and Information Number 10 of 2021. He highlighted that operating online services with another legal entity’s credentials violates national digital regulations.

The Ministry also expressed its commitment to fostering a healthy digital ecosystem through fair and firm oversight. The meeting underscored how active citizen involvement shapes the security of digital space and builds trust within this environment. People across the nation are motivated to file reports about unusual activities, which ultimately strengthen national digital security programs.

Worldcoin has faced scrutiny from regulatory authorities in several countries, including Brazil, where it was banned due to concerns over the compensation scheme for biometric data, and South Korea, which levied an eight-hundred-thousand-dollar fine on the project for breaches of data protection rules.

The project, which is co-founded by OpenAI Chief Executive Officer Sam Altman, aims to generate unique digital identities for users via iris-scanning technology. The data becomes anonymous after processing, and users have complete control over their personal details, which are stored on their devices, according to Damien Kieran, Chief Legal and Privacy Officer of Tools for Humanity.

Despite efforts to engage with Indonesian authorities since October, Worldcoin has not obtained necessary operational approval in the country.

The suspension in Indonesia comes amid a broader regulatory interest in Worldcoin's activities. Authorities in several countries, including Brazil and South Korea, have already taken action to restrict or ban the project's operations due to concerns over data privacy, consumer protection, and the project's broad claims about its potential to revolutionize the global financial system.

As the Indonesian investigation unfolds, it will determine whether Worldcoin can continue its expansion into other international countries. The project's ability to navigate diverse legal and regulatory frameworks will be critical for its success in the long term.