Advisory - Issue 3, February 2024
Indonesia has again revised its Electronic Information and Transactions Law (ITE Law), aiming to enhance the digital regulatory framework, but questions linger over the clarity and implications of the new amendment. From the impact on foreign certification organizers to defamation, and measures protecting minors, our latest advisory examines the main changes.
On 2 January 2024, the Indonesian government enacted Law No. 1 of 2024 – the second amendment to Law No. 11 of 2008 on Electronic Information and Transactions (the “Amendment”). Following criticism over the original law’s ramifications on free speech, the revision seeks to ensure a more just and innovative digital future, aligning with the best interests of the public.
Following are some of the key features of the Amendment.
- Foreign Electronic Certification Organizers - Part of the Amendment elaborates on the role and services of electronic certification organizers. These are the entities responsible for issuing and managing electronic certificates, such as digital signatures, timestamps and authentication tokens, to verify the identity of individuals and parties in online transactions and communications.
- Protection for Minors - Prior to the Amendment, protection for minors was only provided through increased criminal penalties for perpetrators. The Amendment introduces a new article specifically addressing minors’ safety in their use of electronic systems.
- Application of Indonesian Law to International Electronic Contracts - The Amendment mandates that international electronic contracts containing standard clauses, drafted by electronic system organizers, must be governed by Indonesian law under certain conditions.
- Defamation - Previously, under Article 27(3) of the old EIT Law, any activity involving the unlawful distribution, transmission, or making accessible of electronic information or documents containing defamatory content was prohibited. However, the old EIT Law did not provide a clear definition of content that could be deemed insulting or defamatory. This lack of clarity gave rise to multiple interpretations and issues, as it is highly subjective and was widely criticized as a violation of the right to freedom of opinion under Human Rights Law.
- Threat Messages - Under Article 27B (1) and (2) of the Amendment, threatening messages are now defined to include (i) threats of violence and (ii) threats of defamation or disclosure of secrets.
- Government “Intervention” in Electronic Service Providers - The Amendment introduces a new mechanism aimed at creating a fair, accountable, safe, and innovative digital ecosystem by protecting electronic service providers so that they have an equal playing field. Under this mechanism, the government can instruct providers to "make adjustments" to their electronic systems and/or "perform certain actions", compliance with which is mandatory; otherwise, administrative sanctions could be imposed.
Click here to read the full Advisory.
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