The Indonesian Ministry of Communications and Digital (Komdigi) has temporarily suspended the Electronic System Operator Registration Certificate (TDPSE) for Worldcoin and WorldID services.

The Indonesian Ministry of Communications and Digital (Komdigi) has temporarily suspended the Electronic System Operator Registration Certificate (TDPSE) for Worldcoin and WorldID services, as reported by Kompas.com.

The ministry also plans to summon PT Terang Bulan Abadi and PT Sandina Abadi Nusantara to discuss alleged violations of electronic system regulations.

The suspension follows reports of suspicious activities related to these services. Initial investigations revealed that PT Terang Bulan Abadi has not registered as an Electronic System Operator (PSE) and does not have the required TDPSE.

Moreover, Worldcoin’s services were operating using a TDPSE registered to PT Sandina Abadi Nusantara, a different legal entity.

This situation led to the suspension of both TDPSEs and the summonses for the two companies to appear before Komdigi officials.

The ministry's action is part of its broader effort to enforce registration obligations on digital service providers in Indonesia.

Footnotes:

1. E.G. Article 26A of Law No. 11 of 2008 (as amended) on Electronic Information and Transactions.

2. Personal Data Protection Law No. 27 of 2022.

3. E.G. Ministerial Regulation No. 9 of 2017 on the Determination of Procedures for Registration and Partners of Foreign and Domestic Digital Content Providers.

4. E.G. Only 270 local sites were registered under Indonesia’s 2014 regulations (compared to an estimated 10,000 active sites): "Indonesia: Government to Block Unregistered Web Sites" (2014), Southeast Asia Law Center, accessed 18 October 2024, https://www.seavflw.org/2014/12/10/indonesia-government-to-block-unregistered-web-sites/.

5. ASEAN Digital Masterplan 2025.

6. E.G., Vietnam’s Law on Cybersecurity 71/2015/QH13 and Malaysia’s Personal Data Protection Act 2013.

7. "Indonesia Imposes VAT on Non-Resident Digital Service Providers," (2020), Southeast Asia Law Center, accessed 18 October 2024, https://www.seavflw.org/2020/08/17/indonesia-imposes-vat-on-non-resident-digital-service-providers/.

8. "On-Demand Services Support 588,000 Jobs and Contribute Rp91.7 Trillion to Indonesia's Economy in 2023," (2024), Everything JDBS, accessed 18 October 2024, https://everything.jds.co.id/on-demand-services-support-588-000-jobs-and-contribute-rp91-7-trillion-to-indonesia-s-economy-in-2023/.

9. Personal Data Protection Law No. 27 of 2022.

10. E.G., Singapore’s MAS Fintech and RegTech Sandbox.

11. Every Rp100 of GDP generated by digital platforms results in an additional Rp110 in wider economic activity: "Digital Economy in Southeast Asia 2023: The Growing Impact," (2023), Bain & Company, accessed 18 October 2024, p. 24.