APSN Banner

Indonesia blocks tech firms, what actually contains in PSE regulation

Tempo - August 2, 2022

Muhammad Syaifulloh, Jakarta – The popular news headline in recent weeks comes from the decision by the Communications and Informatics Ministry (Kominfo) to block international tech firms that fail to register themselves under Indonesia's PSE regulation, or electronic system providers. Most notably is the recent blockage against Paypal, Steam, Origin.com, up to Yahoo search engine.

According to a large portion of the public, the PSE regulation imposed by the Ministry has harmed the livelihood of workers and freelancers in the field of digital technology, content creators, and even MSMEs that use the online platforms that are no longer able to be accessed currently.

Citing the Ministry's website regarding this rule aptika.kominfo.go.id, companies classified under PSE are people, state administrators, businesses, and communities of people that provide, manage, and/or operate electronic systems independently or in groups for other electronic system users that are intended for personal and/or other purposes.

Kominfo highly recommends companies categorized as PSE to register as they warn of sanctions for those that fail to do so but continue to provide services in Indonesia.

Based on Ministerial Regulation No. 5/2020 concerning Private Scope Electronic System Operators Article 7 (2) explains that in the event that the PSE does not register, the Minister of Communication and Information may impose administrative sanctions in the form of termination of access to the electronic system or access blocking.

According to Government Regulation No. 71/2019 concerning the Implementation of Electronic Systems and Transactions, PSE organizers are divided into two, namely public and private PSE.

Based on Article 1 (5) and (6) of PP No. 71/2019 explains that the Electronic System Operator in the Public Scope is the operation of the electronic system by the State Organizing Agency or an institution appointed by the State Organizing Agency. Meanwhile, Private Scope Electronic System Operator is the implementation of Electronic System by Persons, Business Entities, and the public.

Benefits of registered PSE companies according to Kominfo

The Communication and Informatics Ministry claims there are benefits to electronic service providers that register under the PSE regulation, such as the transparency aspect of the companies providing the services as clear identification would be needed to register, increases public trust towards the certain service provider, educating the masses to better filter companies prior to using their services by tracing their background regulated under PSE.

They also claim imposing the PSE regulation will help boost public trust towards the electronic service providers and help build an ecosystem for Electronic System and Transaction Operations.

The Kominfo Aptika director general Semuel A. Pangerapan claims this regulation aligns with the opening text of the Indonesian 1945 Constitution which mandates the government to protect country citizens and prevent the circulation of negative content, misuse of personal data, sexual exploitation of children, up to digital-based radicalism of terrorism.

Source: https://en.tempo.co/read/1618363/indonesia-blocks-tech-firms-what-actually-contains-in-pse-regulatio